Question: Scenarios Probability Expected return Standard deviation Rate of return for stock 30 Rate of return for bond 10 Boom .30 For stock For stock .40

Scenarios Probability Expected return Standard deviation Rate of return for stock

30 Rate of return for bond 10 Boom .30 For stock For

Scenarios Probability Expected return Standard deviation Rate of return for stock 30 Rate of return for bond 10 Boom .30 For stock For stock .40 15 5 For bond For bond Normal growth Recession .30 -20 -3 Investing 60% in stock fund Calculate the following 1- portfolio expected return 2- Covariance of returns on bond and stock 3- Correlation coefficient and what does it say 4- Standard deviation for portfolio

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