a.) Calculate the values of mean return and variance for thestock fund.

Hint: Use a weighted average of the scenario and the stock fundrate of return for each scenario to get the mean return. Use theformula and example in the chapter six slides to calculate thevariance between the stock and bond funds.

b.) Calculate the value of the covariance between the stock andbond funds.

Hint: Use the formula and example in the chapter six slides tocalculate the covariance between the stock and bond funds

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Consider the following table: Scenario Severe recession Mild recession Normal growth Boom Probability 0.10 0.20 0.40 0.30 Stock Fund Rate of Return -39% -19% 24% 29% Bond Fund Rate of Return -12% 18% 11% -8% Consider the following table: Scenario Severe recession Mild recession Normal growth Boom Probability 0.10 0.20 0.40 0.30 Stock Fund Rate of Return -39% -19% 24% 29% Bond Fund Rate of Return -12% 18% 11% -8%