Question: 2 Consider the following table: Probability ts Scenario Severe recession Mild recession Normal growth Boom 0.05 0.25 0.40 0.30 Stock Fund Rate of Return -28%


2 Consider the following table: Probability ts Scenario Severe recession Mild recession Normal growth Boom 0.05 0.25 0.40 0.30 Stock Fund Rate of Return -28% -8% 13% 18% Bond Fund Rate of Return -13% 19% 12% -98 eBook 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.) Print Mean return Variance -ferences 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.) Covariance 3 Consider the following table: Bond Fund Rate of Return o points Scenario Severe recession Mild recession Normal growth Boom Probability 0.10 0.20 0.35 0.35 Stock Fund Rate of Return -39% -19.0% 16% 30% 88 5% -5% eBook 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 4 decimal places.) Print Mean return Variance % %-Squared References 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 4 decimal places.) Covariance %-Squared
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