Consider the following scenario analysis:

Rate of Return

Scenario Probability Stocks Bonds

Recession 0.3 -8% 16%

Normal economy 0.4 17 9

Boom 0.3 22 3

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	%

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	%