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Apply: Wk 5 Quiz (due Day 7 Savod Help S Consider the following scenario analysis. Scenario Recession Normal economy Boom Probability 0.2 8.7 0.1 Rate

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Apply: Wk 5 Quiz (due Day 7 Savod Help S Consider the following scenario analysis. Scenario Recession Normal economy Boom Probability 0.2 8.7 0.1 Rate of Return Stocks Bonds -7% 15% 16 25 6 ped Assume a portfolio with weights of 0.60 in stocks and 0.40 in bonds a. What is the rate of return on the portfolio in each scenario? (Enter your answer as a percent rounded to 1 decimal place.) Rate of Return Recession Normal economy Boom % 96 96 b. What are the expected rate of return and standard deviation of the portfolio? (Do not round Intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Prev 7 of 17 Next > o TT here to search b. What are the expected rate of return and standard deviation of the portfolio? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Expected return Standard deviation % dt O M to search

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