Consider the following scenario analysis: Rate of Return Scenario Probability Stocks Bonds Recession 0.3 -3 % 12 % Normal economy 0.6 13 8 Boom 0.1 26 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.) 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.) c. Would you prefer to invest in the portfolio, in stocks only, or in bonds only? Explain the benefit of diversification.