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Consider the following scenario analysis: Rate of Scenar Recession Normal economy Boom Return -7% 22 33 7 io ProbabilityStocks Bonds 0.20 o.60 0.20 20% 11

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Consider the following scenario analysis: Rate of Scenar Recession Normal economy Boom Return -7% 22 33 7 io ProbabilityStocks Bonds 0.20 o.60 0.20 20% 11 a. Is it reasonable to assume that Treasury bonds will prow in recessions than in booms? O No O Yes b. Calculate the expected rate of return and standard deviation for each investment. (Do your answers as a percent rounded to 1 decimal place.) not round intermediat calculations. Enter Expected RateStandard Deviation of Returm Stocks Bonds

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