Assignment 6 i 2 10 points Problem 11-13 Scenario Analysis (LO2) Consider the following scenario analysis: Skipped Scenario Recession Normal economy Boom eBook Print Rate of Return Probability Stocks Bonds 0.20 -8% 20% 0.60 21% 12% 0.20 25% 6% Saved a. Is it reasonable to assume that Treasury bonds will provide higher returns in recessions than in booms? b. Calculate the expected rate of return and standard deviation for each investment. c. Which investment would you prefer? Complete this question by entering your answers in the tabs below. References Required A Required B Required C Which investment would you prefer? Stock Bond Which investment would you prefer? < Required B Required C> J