Solve the expected rate of return and standard deviation

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Consider the following scenario analysis:

Rate of Return      Scenario        Probability        Stocks     Bonds

Recession                               0.20                  -9%       21%

Normal economy                        0.70                   22%       9%

Boom                                            0.10                25%        5%

Question 1: 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.)

Reference no: EM132584535

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