Scenario Recession Normal economy Boom Required A Probability 0.3 0.6 0.1 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? b. What are the expected rate of return and standard deviation of the portfolio? Required B Recession Normal economy Boom Rate of Return Complete this question by entering your answers in the tabs below. Stocks -6% 15 24 Bonds 14% 11 5 Rate of Return % % % What is the rate of return on the portfolio in each scenario? Note: Enter your answer as a percent rounded to 1 decimal place. 4

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? b. What are the expected rate of return and standard deviation of the portfolio? Complete this question by entering your answers in the tabs below. What is the rate of return on the portfolio in each scenario? Note: Enter your answer as a percent rounded to 1 decimal place