Question: ( UB) value: 15.00 points Consider the following table: Scenario Stock Fund Rate of Return -32% - 10% 22% 37% Probability 0.10 0.15 0.35 0.40

( UB) value: 15.00 points Consider the following table: Scenario Stock Fund Rate of Return -32% - 10% 22% 37% Probability 0.10 0.15 0.35 0.40 Bond Fund Rate of Retur -10% 6% 10% 7% Severe recession Mild recession Normal growth Boom a. Calculate the values of mean return and variance for the stock fund. (Do not round intermediate calculations. Round "Mean return value places.) % 17.8 5.17 Mean retum Variance b. Calculate the value of the covariance between the stock and bond funds. (Negative value should be indicated by a minus sign. Do not answer to 2 decimal places.) 138 Covariance

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