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Given the information below for #6-#7. If you have $100 invested in stocks, $50 in bonds, Scenario Prob. Stocks Bonds Recession .50 -8% 15% Normal
Given the information below for #6-#7. If you have $100 invested in stocks, $50 in bonds,
Scenario Prob. Stocks Bonds
Recession .50 -8% 15%
Normal .30 15% 10%
Boom .20 23% 5%__
6. What is the expected return of stocks?
7. What is the total risk of the portfolio?
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