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Problem 11-18 Portfolio Analysis (LO02) Consider the following scenario analysis 10 points Rate of Return Probability Stocks Bonds 14% Scenarico Recession Normal economy Boom 5%
Problem 11-18 Portfolio Analysis (LO02) Consider the following scenario analysis 10 points Rate of Return Probability Stocks Bonds 14% Scenarico Recession Normal economy Boom 5% 15 25 0.20 0.60 0.26 eBook Assume a portfolio with weights of .60 in stocks and.40 in bonds. Print a. What is the rate of return on the portfolio in each scenario? (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place.) References Rate of Return Recession Normal economy Boom b. What are the expected rate of return and standard deviation of the portfolio? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Expected return Standarod deviation
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