Consider the following table:
Stock Fund Bond Fund Scenario Probability Rate of Return Rate of Return Severe recession 0.15 ?34% ?10% Mild recession 0.20 ?18% 6% Normal growth 0.35 14% 7% Boom 0.30 24% ?3%
a. 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
b. 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.)