Scenario Probability Stocks Bonds Recession .20 ?5 % +19% Normal economy .70 +20 +10 Boom .10 +32 +9 ________________________________________ Consider a portfolio with weights of .6 in stocks and .4 in bonds. a. What is the rate of return on the portfolio in each scenario? (Do not round intermediate calculations. Round your answers to 1 decimal place.) Scenario 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. Round your answers to 2 decimal places.) Expected rate of return _________% Standard deviation __________% c. Which investment would you prefer? Portfolio, or Bonds, or Stocks