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Problem 11-18 Portfolio Analysis (LO2) Consider the following scenario analysis: points Skipped Scenario Recession Normal economy Boom Rate of Return Probability Stocks Bonds 0.3 -3%

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Problem 11-18 Portfolio Analysis (LO2) Consider the following scenario analysis: points Skipped Scenario Recession Normal economy Boom Rate of Return Probability Stocks Bonds 0.3 -3% 12% 0.6 138 0.1 26 3 eBook 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? (Enter your answer as a percent rounded to 1 decimal place.) Print Rate of Return References Recession Normal economy Boom b. What are the expected rate of return and standard deviation of the portfolio? (Enter your answer as a percent rounded to 2 decimal places.) Expected return Standard deviation

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