Homework 4 - Chapter 6 1 1 Consider the following table: Scenario Severe recession Mild recession 15 Normal growth points Boom eBook Saved Help Save & Exit Submit Probability 0.05 Stock Fund Rate of Return -29% Bond Fund Rate of Return -14% 0.25 -9% 20% 0.40 14% 13% 0.30 19% -10% Check my work 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.) Print References Mean return Variance 7.6% 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