Retu 16 Problem 11-13 Scenario Analysis (LO2) Consider the following scenario analysis: points Scenario Recession Normal economy Boom Rate of Return Probability Stocks Bonds 0.20 -7% 20% 0.60 22 11 0.20 337 a. Is it reasonable to assume that Treasury bonds will provide higher returns in recessions than in booms? No Yes b. Calculate the expected rate of return and standard deviation for each investment. (Do not round intermediate calculations. Enter your answers as a percent rounded to 1 decimal place.) Answer is complete but not entirely correct. Stocks Bonds Expected Rate of Return 18.4 % 12.0 % Standard Deviation 17.0 4.2 X % %