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Problem 6-6(Algo) Consider the following table: Scenario Probability Stock Fund Rate...

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Accounting

Problem 6-6(Algo)
Consider the following table:
Scenario Probability Stock Fund
Rate of Return Bond Fund
Rate of Return
Severe recession 0.1044%11%
Mild recession 0.2024%17%
Normal growth 0.4029%10%
Boom 0.3034%7%
Required:
a. Calculate the values of mean return and variance for the stock fund. (Do not round intermediate calculations. Round "Mean return" value to 1 decimal place and "Variance" to 2 decimal places.)
b. Calculate the value of the covariance between the stock and bond funds. (Negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.)

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