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Consider two risky assets: a stock fund and a bond fund with the following probability distributions. Scenario Please show your work so I can understand

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Consider two risky assets: a stock fund and a bond fund with the following probability distributions. Scenario

Please show your work so I can understand how to complete this. Thank you.

Question 1 1 pts The following data applies to Questions 1 to 3 Consider two risky assets: a stock fund and a bond fund with the following probability distributions. Scenario Probability Stock Return (%) Bond return (%) Severe recession 0.05 Mild recession 0.25 Normal growth 0.40 Boom What is the expected return for the bond fund? Your answer should be in percentage points and accurate to the hundredth -40 -14 17 15 0.30 -5 O 4.6 O 5 O 5.6 O 3.2 Question 2 1 pts What is the standard deviation of the bond fund? Your answer should be in percentage points and accurate to the hundredth O 7.26 O 8.49 O 6.45 O 8.27

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