Question: Problem 11-18 Portfolio Analysis (LO2) Consider the following scenario analysis: Rate of Return Probability StocksBonds .20 - 5% 14% 0.60 0.20 Scenario Recession Normal economy

 Problem 11-18 Portfolio Analysis (LO2) Consider the following scenario analysis: Rate
of Return Probability StocksBonds .20 - 5% 14% 0.60 0.20 Scenario Recession

Problem 11-18 Portfolio Analysis (LO2) Consider the following scenario analysis: Rate of Return Probability StocksBonds .20 - 5% 14% 0.60 0.20 Scenario Recession Normal economy Boom Book Print ferences Assume a portfolio with weights of 60 in stocks and .40 in bonds. a. What is the rate of return on the portfolio in each scenario? (Do not round intermediate calculations. Enter you percent rounded to 1 decimal place.) Rate of Return Recession Normal economy Boom b. What are the expected rate of return and standard deviation of the portfolio? (Do npt round i answer as a percent rounded to 2 decimal places.) Expected return Standard deviation MC Graw

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