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rk 8 (Ch. 11) 6 Help Save & Exit Saved Consider the following scenario analysis: Rate o Return Scenario Recession Normal economy Boom Probability Stocks

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rk 8 (Ch. 11) 6 Help Save & Exit Saved Consider the following scenario analysis: Rate o Return Scenario Recession Normal economy Boom Probability Stocks Bonds 0.20 0.60 0.20 -5% 14% 15 8 25 4 Assume a portfolio with weights of .60 in stocks and 40 in bonds. a. What is the rate of return on the portfolio in each scenario? (Do not round intermediate calculations. Enter your answ ce as a percent rounded to 1 decimal place.) 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.) Help Save& Exit S Saved 8 (Ch. 11) 6 rk Assume a portfolio with weights of 60 in stocks and .40 in bonds. a. What is the rate of return on the portfolio in each scenario? (Do not round intermediate calculations. Enter your answ as a percent rounded to 1 decimal place.) 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 Standard deviation

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