Consider the following scenario analysis: Rate of Return Stocks Bonds -6% 18% Scenario Recession Normal economy Boom Probability 0.3 0.4 0.3 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.) Rate of Return Recession Normal economy Boom b. What are the expected rate of return and standard deviation of the portfolio? (Do not round inte answer as a percent rounded to 2 decimal places.) Expected return Standard deviation c. Would you prefer to invest in the portfolio, in stocks only, or in bonds only? Explain the benefit of diversification. Invest in D