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Consider the following scenario analysis: Scenario Probability Rate of Return Stocks Bonds Recession 0.2 7% 13% Normal economy 0.5 14 9 Boom 0.3 27 4

Consider the following scenario analysis: Scenario Probability Rate of Return Stocks Bonds Recession 0.2 7% 13% Normal economy 0.5 14 9 Boom 0.3 27 4 Assume a portfolio with weights of 0.60 in stocks and 0.40 in bonds. What is the rate of return on the portfolio in each scenario? What are the expected rate of return and standard deviation of the portfolio

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