Question: Help me solve this and explain all steps plese. 13. Scenario Analysis. Consider the following scenario analysis: (LO]]-2) Rate of Return Scenario Probability Stocks Bonds

Help me solve this and explain all steps plese.

13. Scenario Analysis. Consider the following scenario analysis: (LO]]-2) Rate of Return Scenario Probability Stocks Bonds Recession 0.20 -5% + 14% Normal economy 0.60 +15 +8 Boom 0.20 +25 +4 18. Portfolio Analysis. Use the data in the scenario analysis from Problem 13 and consider a portfolio with weights of .60 in stocks and .40 in bonds. (LO1 1-3) a. What is the rate of return on the portfolio in each scenario? b. What are the expected rate of return and standard deviation of the portfolio? c. Would you prefer to invest in the portfolio, in stocks only, or in bonds only? Explain the benefit of diversification

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