Consider the following scenario analysis:

$\backslash$table$[[,,$Rate of Return$],[$Scenario$,$Probability,Stocks,Bonds$],[$Recession$,0\mathrm{.}20,-68,178],[$Normal economy,$0\mathrm{.}60,198,98],[$Boom$,0\mathrm{.}20,308,58]]$

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.

$.$ Required A$.$

Required B

Is it reasonable to assume that Treasury bonds will provide higher returns in recessions than in booms?

Is it reasonable to assume that Treasury bonds will provide higher returns in recessions than in booms?