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Consider the following scenario analysis: Rate of Return Scenario Probability Stocks Bonds Recession 0.20 9 % 21 % Normal economy 0.70 22 9 Boom 0.10
Consider the following scenario analysis: Rate of Return Scenario Probability Stocks Bonds Recession 0.20 9 % 21 % Normal economy 0.70 22 9 Boom 0.10 25 5
b. Calculate the expected rate of return and standard deviation for each investment. (Do not round intermediate calculations. Enter your answers as a percent rounded to 1 decimal place.)
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