Question: Show me the steps to solve Consider the following table: Scenario Probability Stock Fund Rate of Return Bond Fund Rate of Return Severe recession 0

Show me the steps to solve
Consider the following table:
Scenario Probability Stock Fund
Rate of Return Bond Fund
Rate of Return
Severe recession 0.0527%12%
Mild recession 0.257%18%
Normal growth 0.4012%11%
Boom 0.3017%8%
Required:
Calculate the values of mean return and variance for the stock fund.
Note: Do not round intermediate calculations. Round "Mean return" value to 1 decimal place and "Variance" to 2 decimal places.
Calculate the value of the covariance between the stock and bond funds.
Note: Negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.
Required:
a. Calculate the values of mean return and variance for the stock fund.
Note: Do not round intermediate calculations. Round "Mean return" value to 1 decimal place and "Variance" to 2 decimal
places.
b. Calculate the value of the covariance between the stock and bond funds.
Note: Negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2
decimal places.
 Show me the steps to solve Consider the following table: Scenario

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