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Consider the following table:Stock FundBond FundScenarioProbabilityRate of ReturnRate of ReturnSevere recession0.05–28%–13%Mild recession0.25–8%19%Normal growth0.4013%12%Boom0.3018%–9%a.Calculate the values of mean return and variancefor the stock fund. (Do not round intermediatecalculations. Round "Mean return" value to 1 decimal place and"Variance" to 2 decimal places.)b.Calculate the value of the covariance betweenthe stock and bond funds. (Negative value should beindicated by a minus sign. Do not round intermediate calculations.Round your answer to 2 decimal places.)
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