Consider the following scenario analysis:

Scenario Probability Rate of return

stocks / bonds

Recession 0.30 -4 % / 16%

Normal economy 0.50 17% / 10 %

Boom 0.20 28% / 9%

a. is it reasonable to assume that treasury bonds will provide higher returns in recessions than in booms?

no/yes

b. calculate the expected rate of return and standard deviation for each investment. (do not round intermediate calculations. enter your answers as a percent rounded to 1 decimal place.