Question: I need the answer to b. Variance.variance for the stock fund. B. Variance is not 4.00%. B. Variance is not 4.00%. B. Variance is not

I need the answer to b. Variance.variance for the stock fund. B. Variance is not 4.00%.
B. Variance is not 4.00%. B. Variance is not 4.00%.B. Variance is not 4.00%.B. Variance is not 4.00%.B. Variance is not 4.00%.B. Variance is not 4.00%.B. Variance is not 4.00%.B. Variance is not 4.00%.B. Variance is not 4.00%.B. Variance is not 4.00%.B. Variance is not 4.00%.B. Variance is not 4.00%.
I need the answer to b. Variance.variance for the stock fund.I need the answer to b. Variance.variance for the stock fund.I need the answer to b. Variance.variance for the stock fund.I need the answer to b. Variance.variance for the stock fund.I need the answer to b. Variance.variance for the stock fund.I need the answer to b. Variance.variance for the stock fund.
Please see the attachment and solve the problem.
I need the answer to b. Variance.variance for the stock fund.Variance is not 4.00%.
Consider the following table:
Stock Fund Bond Fund
Scenario Probability Rate of Return Rate of Return
Severe recession0.10-43%-10%
Mild recession 0.20-23%16%
Normal growth 0.4028%9%
Boom 0.3033%-6%
Stock FundBond FundScenarioProbabilityRate of ReturnRate of ReturnSevere recession0.10-43%-10%Mild recession0.20-23%16%Normal growth0.4028%9%Boom0.3033%-6%
b.Calculate the values of mean return and variance for the stock fund. (Do not round intermediate calculations. Round "Mean return" value to 2 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
Stock Fund Bond Fund
Scenario Probability Rate of Return Rate of Return
Severe recession0.10-43%-10%
Mild recession 0.20-23%16%
Normal growth 0.4028%9%
Boom 0.3033%-6%
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
