Standard deviation of the portfolio

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Reference no: EM132037975

Consider the following scenario analysis: Rate of Return Scenario Probability Stocks Bonds Recession 0.3 -6 % 14 % Normal economy 0.5 15 11 Boom 0.2 26 5 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 a percent rounded to 1 decimal place.) b. What are the expected rate of return and standard deviation of the portfolio? (Enter your answer as a percent rounded to 2 decimal places.)

Reference no: EM132037975

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