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Consider the following scenario analysis: Scenario Recession Normal economy Boom Rate of Return Probability Stocks 0.2 -7% Bonds 15% 0.7 16 7 0.1 25

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Consider the following scenario analysis: Scenario Recession Normal economy Boom Rate of Return Probability Stocks 0.2 -7% Bonds 15% 0.7 16 7 0.1 25 6 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? b. What are the expected rate of return and standard deviation of the portfolio? S Complete this question by entering your answers in the tabs below. Required A Required B What is the rate of return on the portfolio in each scenario? Note: Enter your answer as a percent rounded to 1 decimal place. Recession Normal economy Boom Rate of Return % % %

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