Question: erwise, you cannot get a full credit. 19. Consider the following scenario analysis. (24 pts) probability 0.3 Scenario Recession Normal economy Boom rates of return

scenario analysis. (24 pts) probability 0.3 Scenario Recession Normal economy Boom rates

erwise, you cannot get a full credit. 19. Consider the following scenario analysis. (24 pts) probability 0.3 Scenario Recession Normal economy Boom rates of return stocks bonds -5% 14% 15% 8% 25% 4% 0.4 0.3 a. Calculate the expected rate of return and standard deviation for each investment. (8 pts) Consider a portfolio with weights of .60 in stocks and.40 in bonds from now on. b. What is the rate of return on the portfolio in each scenario? (8 pts) c. What are the expected rate of return and standard deviation of the portfolio? (8 pts)

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