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Calculate the expected rate of return and standard deviation for each investment Scenario: Probability Rate of Return: Stocks Rate of Return: Bonds Recession 0.30 -4%

Calculate the expected rate of return and standard deviation for each investment

Scenario: Probability Rate of Return: Stocks Rate of Return: Bonds
Recession 0.30 -4% 16%
Normal Economy 0.50 17% 10%
Boom 0.20 28% 9%

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