Question

Consider the following table: Stock Fund Bond Fund Scenario Probability Rate of Return Rate of Return...

Consider the following table:

Stock Fund Bond Fund
Scenario Probability Rate of Return Rate of Return
Severe recession 0.20 −38% −12%
Mild recession 0.20 −26.0% 20%
Normal growth 0.35 8% 3%
Boom 0.25 46% −7%


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 %-Squared


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.)

Covariance             %-Squared

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Consider the following table: Stock Fund Bond Fund Scenario Probability Rate of Return Rate of Return...
Consider the following table: Stock Fund Bond Fund Scenario Probability Rate of Return Rate of Return Severe recession 0.10 ?37% ?9% Mild recession 0.20 ?11% 15% Normal growth 0.35 14% 8% Boom 0.35 30% ?5% 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 2 decimal places.) Mean return = % Variance = b. Calculate the value of the covariance...
Consider the following table: Stock Fund Bond Fund Scenario Probability Rate of Return Rate of Return...
Consider the following table: Stock Fund Bond Fund Scenario Probability Rate of Return Rate of Return Severe recession 0.10 −32% −10% Mild recession 0.15 −10.0% 6% Normal growth 0.35 22% 10% Boom 0.40 37% −7% 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 %-Squared b. Calculate the value of the covariance between...
Consider the following table:     Stock Fund Bond Fund Scenario Probability Rate of Return Rate of...
Consider the following table:     Stock Fund Bond Fund Scenario Probability Rate of Return Rate of Return Severe recession 0.10 −37% −10% Mild recession 0.20 −17% 16% Normal growth 0.40 22% 9% Boom 0.30 27% −6% 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 2 decimal places.)   Mean return ??? % Variance ??? %-Squared b. Calculate the value of...
Consider the following table:     Stock Fund Bond Fund Scenario Probability Rate of Return Rate of...
Consider the following table:     Stock Fund Bond Fund Scenario Probability Rate of Return Rate of Return Severe recession 0.10 −39% −12% Mild recession 0.20 −19% 18% Normal growth 0.40 24% 11% Boom 0.30 29% −8% 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 2 decimal places.)   Mean return % Variance %-Squared b. Calculate the value of the covariance...
Consider the following table: Stock Fund Bond Fund Scenario Probability Rate of Return Rate of Return...
Consider the following table: Stock Fund Bond Fund Scenario Probability Rate of Return Rate of Return Severe recession 0.10 −32% −17% Mild recession 0.15 −22% 15% Normal growth 0.35 14% 6% Boom 0.40 35% 4% 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...
Consider the following table: Stock Fund Bond Fund Scenario Probability Rate of Return Rate of Return...
Consider the following table: Stock Fund Bond Fund Scenario Probability Rate of Return Rate of Return Severe recession 0.20 −28% −10% Mild recession 0.25 −8.0% 12% Normal growth 0.35 4% 2% Boom 0.20 42% −7% a. Calculate the values of mean return (1 decimal) and variance for the stock fund (4 decimals). b. Calculate the value of the covariance between the stock and bond funds (4 decimals).
Consider the following table: Stock Fund Bond Fund Scenario Probability Rate of Return Rate of Return...
Consider the following table: Stock Fund Bond Fund Scenario Probability Rate of Return Rate of Return Severe recession 0.05 −28% −13% Mild recession 0.25 −8% 19% Normal growth 0.40 13% 12% Boom 0.30 18% −9% 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 2 decimal places.) Expert Answer Anonymous answered this Was this answer helpful? 0 0 7,656 answers...
Consider the following table: Stock Fund Bond Fund Scenario Probability Rate of Return Rate of Return...
Consider the following table: Stock Fund Bond Fund Scenario Probability Rate of Return Rate of Return Severe recession 0.05 –40 % –9 % Mild recession 0.25 –14 % 15 % Normal growth 0.40 17 % 8 % Boom 0.30 33 % –5 % 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 2 decimal places.) Covariance %-Squared   
Consider the following table: Stock Fund Bond Fund Scenario Probability Rate of Return Rate of Return...
Consider the following table: Stock Fund Bond Fund Scenario Probability Rate of Return Rate of Return Severe recession .10 –37% –9% Mild recession .20 –11% 15% Normal growth .35 14% 8% Boom .35 30% –5% 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...
Problem 6-7 Consider the following table:      Stock Fund Bond Fund Scenario Probability Rate of Return...
Problem 6-7 Consider the following table:      Stock Fund Bond Fund Scenario Probability Rate of Return Rate of Return   Severe recession 0.10        −34%        −9%            Mild recession 0.20        −20%        5%            Normal growth 0.30        21%        9%            Boom 0.40        36%        6%          a. Calculate the values of mean return and variance for the stock fund. (Do not round intermediate calculations. Round...