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Consider the following table Stock Fund Rate of Return Bond Fund Rate of Return Probability 0.10 0.20 0.40 0.30 Scenario Severe recession Mild recession Normal growth Boom -40% -20% 25% 30% -13% 19% 12% -9% b. 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.) Mean return Variance c. 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 A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and corporate bond fund, and the third is a T-bill money market fund that yields a sure rate of 4.9%. The probability distributions of the risky funds are Expected Return Standard Deviation 39% 33% Stock fund (S) 10% 5% Bond fund (B) The correlation between the fund returns is 0.0030 What is the expected return and standard deviation for the minimum-variance portfolio of the two risky funds? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Expected return Standard deviation A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and corporate bond fund, and the third is a T-bill money market fund that yields a sure rate of 4.4%. The probability distributions of the risky funds are: Expected ReturnStandard Deviation Stock fund (S) Bond fund (8) 14% 5% 34% 28% The correlation between the fund returns is 0.0214 What is the Sharpe ratio of the best feasible CAL? (Do not round intermediate calculations. Round your answer to 4 decimal places.) Sharpe ratio Here are data on two companies. The T-bill rate is 5.0% and the market risk premium is 9.5%. Company Forecast return Standard deviation of returns Beta $1 Discount Stor 16% 24% Everything $5 15% 26% 1.4 1.0 What would be the fair return for each company, according to the capital asset pricing model (CAPM)? (Round your answers to 2 decimal places.) Company Expected Return $1 Discount Store Everything $5