The following information applies to Question 7 and Question 8 You expect there is an equal chance that there will be a recession next year, the economy will be normal or there will be a boom on the economy. You hold 2/3 of your portfolio in stocks, and 1/3 of your portfolio in bonds. The expected returns depending on the economy are given below: The expected return for your portfolio is: 9.67%2.67%6.17%7.33% The following information applies to Question 7 and Question 8 You expect there is an equal chance that there will be a recession next year, the economy will be normal or there will be a boom on the economy. You hold 2/3 of your portfolio in stocks, and 1/3 of your portfolio in bonds. The expected returns depending on the economy are given below: The expected standard deviation for your portfolio is: (You will need to do several steps to get the answer to this question - i.e. calculated the Standard Deviation for S and B and the covariance of returns) \begin{tabular}{c} 4.09% \\ \hline 2.96% \\ \hline 9.68% \\ \hline 7.22% \end{tabular} If you are comparing the historical performance of different investments, you will likely use the... Probability Weighted Average Returns Compounded Annual Return Arithmetic Average Probability Weighted Geometric Mean