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Consider the following scenario analysis: Rate of Return Scenario Probability Stocks Bonds Recession 0.3 -5% 14% Normal economy 0.6 15 10 Boom 0. 1 24

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Consider the following scenario analysis: Rate of Return Scenario Probability Stocks Bonds Recession 0.3 -5% 14% Normal economy 0.6 15 10 Boom 0. 1 24 5 1.76 points 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 % Mc Prev 17 Graw

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