14 ces Consider the following scenario analysis: Scenario Recession Normal economy Boom No Stocks Bonds Yes a. Is it reasonable to assume that Treasury bonds will provide higher returns in recessions than in booms? Probability 0.20 8.70 0.10 Expected Rate of Return % % 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.) Rate of Return Stocks Bonds 19% 10% Standard Deviation % % c. Which investment would you prefer? -5% 20% 32% Which investment would you prefer? 9% Stock Bond