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Consider the following scenario analysis: Rate of Return Scenario Probability Stocks Bonds Recession 0.2 -7 % 15 % Normal economy 0.7 16 9 Boom 0.1

Consider the following scenario analysis:

		Rate of Return
Scenario	Probability	Stocks		Bonds
Recession	0.2	-7	%	15	%
Normal economy	0.7	16		9
Boom	0.1	25		6

Assume a portfolio with weights of 0.60 in stocks and 0.40 in bonds.

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