Chapter 11 Assignment i 7 Problem 11-18 Portfolio Analysis (LO3) 12.5 points Consider the following scenario analysis: Scenario Recession Probability 0.3 Rate of Return Stocks -3% Bonds 12% Normal economy eBook Boom 0.6 13 8 0.1 26 3 Saved Print 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? (Enter your answer as a percent rounded to 1 decimal place.) References Recession Normal economy Boom Rate of Return % % % b. What are the expected rate of return and standard deviation of the portfolio? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Expected return Standard deviation % %