Consider the following attached scenario analysis:

Assignment Print View 1 of 1 http://ezto.mheducation.com/hm.tpx?todo=c15SinglePrintView&singleQ... Consider the following scenario analysis: Rate of Return Probability Stocks Bonds 0.20 -4% 16% 0.50 18 9 0.30 29 6 Scenario Recession Normal economy Boom a. Is it reasonable to assume that Treasury bonds will provide higher returns in recessions than in booms? No Yes b. Calculate the expected rate of return and standard deviation for each investment. (Do not round intermediate calculations. Enter your answers as a percent rounded to 1 decimal place.) Expected Rate of Return Standard Deviation Stocks % % Bonds % % References Worksheet Difficulty: Intermediate Learning Objective: 11-02 Calculate returns and standard deviation of returns for individual common stocks or for a stock portfolio. 9/24/2017, 8:20 PM