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Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate Is it reasonable to assume that Treasury bonds will provide higher returns in recessions than in booms? Yes No b. Calculate the expected rate of return and standard deviation for each investment. (Do not round intermediate calculation your answers as a percent rounded to 1 decimal place.) Answer is complete but not entirely correct. Expected Rate of Standard Return Deviation 16.4% % 10.3 % 100 x 439 Stocks Bonds Scarved Help Save & EX Check my work mode: This shows what is correct or incorrect for the work you have completed so for. It does not indicate completion Return Consider the following scenario analysis Scenario Recession Normal economy Rate of Return Probability Stocks Bonds 0.20 -5% 14% 0.60 158 0.20 25 4 a. Is it reasonable to assume that Treasury bonds will provide higher returns in recessions than in booms? Yes No b. Calculate the expected rate of return and standard deviation for each investment. (Do not round Intermediate calculations. Enter your answers os o percent rounded to 1 decimal place.) 9

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