Question: please answer a and b WITHOUT using excel. thanks in advance 1. Consider the following table Scenario Severe recession Mild recession Normal growth Boom Probability
1. Consider the following table Scenario Severe recession Mild recession Normal growth Boom Probability 0.05 0.25 0.40 0.30 Stock Fund Rate of Return -40% -14% 17% 33% Bond Fund Rate of Return -9% 15% 8% -5% a) Calculate the values of mean return and variance for the stock fund. (Do not round intermediate calculations. Round your answer to 2 decimal places.) b) Calculate the value of the covariance between stock and bond funds. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
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