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Consider the following scenario analysis: Rate of Return Scenario Recession Normal economy Probability Stocks Bonds -4% 17 26 16% 10 Boom Assume a portfolio with
Consider the following scenario analysis: Rate of Return Scenario Recession Normal economy Probability Stocks Bonds -4% 17 26 16% 10 Boom 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? (Enter your answer as a percent rounded to 2 decimal places.) Expected return Standard deviation
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