9). Consider the following table regarding returns for stocks and bonds during different economic conditions.

Conditions	Probability of occurrence	Stock returns	Bond returns
Recession	30%	-4%	12%
Stable	40%	17%	8%
Booming	30%	26%	3%

1. What is the expected rate of return and standard deviation for a portfolio consisting of 100% stocks? What about 100% bonds?
2. Consider now a portfolio that is invested 50% stocks and 50% bonds. Compute the expected return and standard deviation.
3. As an investor, do you prefer this mixed portfolio, a portfolio of 100% stocks, or a portfolio of 100% bonds? Explain your decision.