Below are data on economic condition, probability, and expected return on stock and bond funds in a year. Scenario Probability Stock Fund (%) Bond Fund (%) Severe recession 0.05 -37 -10 Mild recession 0.25 -11 10 Normal growth 0.40 14 7 Boom 0.30 30 2 Calculate expected return and standard deviation of each fund. Calculate covariance and correlation coefficient between stock fund and bond fund.

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A: Therefore hence option (c) is not correct.

Contingency Table

A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.

Binomial Distribution

Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.