Question: Problem 11-18 Portfolio Analysis (LO3) Consider the following scenario analysis: Rate of Return Scenario Probability Stocks Bonds Recession 0.3 16% Normal economy 0.4 17 Boom

Problem 11-18 Portfolio Analysis (LO3) Consider the following scenario analysis: Rate of Return Scenario Probability Stocks Bonds Recession 0.3 16% Normal economy 0.4 17 Boom 0 .3 22 Assume a portfolio with weights of 0.60 in stocks and 0.40 in bonds a. What is the rate of return on the portfolio in each scenario? (Enter your answer as Rate of Return Recession Normal economy Boom b. What are the expected rate of return and standard deviation of the portfolio? (Do not answer as a percent rounded to 2 decimal places.) Expected return Standard deviation

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