Problem $11-18$ Portfolio Analysis $($LO$3)$

Consider the following scenario analysis:

$$

$$Rate of ReturnScenarioProbabilityStocksBondsRecession$0\mathrm{.}20-5\%14\%$Normal economy$0\mathrm{.}60158$Boom$0\mathrm{.}20254$

$$

Assume a portfolio with weights of $0\mathrm{.}60$ in stocks and $0\mathrm{.}40$ 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.$)$

$$

$$

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.$)$

$$