Consider the following scenario analysis: Rate of Return Stocks Scenario Bonds Probability 0.20 Recession -8% 20% Normal economy 0.60 21% 12% Boom 0.20 25% 6% a. Is it reasonable to assume that Treasury bonds will provide higher returns in recessions than in booms? O No O 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 Return Standard Deviation % % Stocks Bonds % % c. Which investment would you prefer? Bond Which investment would you prefer? Stock