Consider the following scenario analysis:

a$.$ Is it reasonable to assume that Treasury bonds will provide higher eturns in recessions than in booms?

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

c$.$ Which investment would you prefer?

Complete this question by entering your answers in the tabs below.

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

Note: Do not round intermediate calculations. Enter your answers as a percent rounded to $1$ decimal place.Consider the following scenario analysis:

Scenario Probability Rate of Return

Stocks Bonds

Recession $0\mathrm{.}208\%20\%$

Normal economy $0\mathrm{.}6021\%12\%$

Boom $0\mathrm{.}2025\%6\%$

Is it reasonable to assume that Treasury bonds will provide higher returns in recessions than in booms?

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

Which investment would you prefer?

A$)$Is it reasonable to assume that Treasury bonds will provide higher returns in recessions than in booms?

B$)$ Calculate the expected rate of return and standard deviation for each investment.

C$)$ Which investment would you prefer?Consider the following scenario analysis:

a$.$ Is it reasonable to assume that Treasury bonds will provide higher eturns in recessions than in booms?

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

c$.$ Which investment would you prefer?

Complete this question by entering your answers in the tabs below.

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

Note: Do not round intermediate calculations. Enter your answers as a percent rounded to $1$ decimal place.