Consider the following table:          Stock Fund Bond Fund Scenario Probability Rate of Return Rate of Return   Severe recession 0

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Consider the following table:

    

		Stock Fund	Bond Fund
Scenario	Probability	Rate of Return	Rate of Return
Severe recession	0.05	−42%	−15%
Mild recession	0.25	−18%	7%
Normal growth	0.40	20%	9%
Boom	0.30	27%	−6%

   

b.	Calculate the values of mean return and variance for the stock fund. (Do not round intermediate calculations. Round "Mean return" value to 1 decimal place and "Variance" to 4 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 4 decimal places.)

Covariance