Rate of Return Scenario Probability Stocks Bonds Recession .30 -4% +16% Normal economy .50 +17 +10...

 

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Rate of Return Scenario Probability Stocks Bonds Recession .30 -4% +16% Normal economy .50 +17 +10 Boom .20 +28 +9 Consider a portfolio with weights of .7 in stocks and .3 in bonds. a. What is the rate of return on the portfolio in each scenario? (Do not round intermediate calculations. Round your answers to 1 decimal place.) Scenario Recession Normal economy Boom Rate of Return 1% % % b. What are the expected rate of return and standard deviation of the portfolio? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Expected rate of return Standard deviation c. Which investment would you prefer? Portfolio Bonds Stocks % % Rate of Return Scenario Probability Stocks Bonds Recession .30 -4% +16% Normal economy .50 +17 +10 Boom .20 +28 +9 Consider a portfolio with weights of .7 in stocks and .3 in bonds. a. What is the rate of return on the portfolio in each scenario? (Do not round intermediate calculations. Round your answers to 1 decimal place.) Scenario Recession Normal economy Boom Rate of Return 1% % % b. What are the expected rate of return and standard deviation of the portfolio? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Expected rate of return Standard deviation c. Which investment would you prefer? Portfolio Bonds Stocks % %