LO 12.5 points Problem 11-13 Scenario Analysis (LO2) Consider the following scenario analysis Scenario Recession eBook Normal economy Boom Print References Probability 0.20 Rate of Return Stocks Bonds -4% 19% 0.40 20% 9% 0.40 26% 8% a. Is it reasonable to assume that Treasury bonds will provide higher returns in recessions than in booms? No Yes b. Calculate the expected rate of return and standard deviation for each investment. (Do not round intermediate calculations. Enter your answers as a percent rounded to 1 decimal place.) Expected Rate of Return Standard Deviation Stocks Bonds % % % % c. Which investment would you prefer? Which investment would you prefer? Stock Bond