Consider the following scenario analysis: Rate of Return Scenario Stocks Bonds Probability 0.20 Recession 17% Normal economy 0.60 19% 9% Boom 0.20 30% 5% a. Is it reasonable to assume that Treasury bonds will provide higher returns in recessions than in booms? O 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.) Expected Rate of Standard Deviation Return % % Stocks Bonds % c. Which Investment would you prefer? Bond Which investment would you prefer? Stock