Question: calculate the expected rate of return & standard deviation for each investment recession - probability 0.30, stock -6%, bonds 15% normal economy- 0.60, 18%, 8%
calculate the expected rate of return & standard deviation for each investment
recession - probability 0.30, stock -6%, bonds 15%
normal economy- 0.60, 18%, 8%
Boom- 0.10, 26%, 5%
Which investment would you prefer?
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