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3). Consider the following table regarding returns for stocks and bonds during different economic conditions. (10 points) a) What is the expected rate of return
3). Consider the following table regarding returns for stocks and bonds during different economic conditions. (10 points) a) What is the expected rate of return and standard deviation for a portfolio consisting of 100% stocks? What about 100% bonds? a. Rate of Return: 11.22% b. Standard Deviation: b) Consider now a portfolio that is invested 50% stocks and 50% bonds. Compute the expected return and standard deviation. c) As an investor, do you personally prefer this mixed portfolio, a portfolio of 100% stocks, or a portfolio of 100% bonds? Explain your decision
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