Consider the following scenario analysis: Rate of Return Scenario Probability Stocks Bonds Recession 0.20 3 % 18 % Normal economy 0.60 19% 9% Boom 0.20 28% 5% a. Is it reasonable to assume that Treasury bonds will provide higher returns in recessions than in booms? (No/Yes)

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.)