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What is the rate of return on the portfolio in scenario

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Reference no: EM132528067

Consider the following scenario analysis: Scenario Probability Rate of return

Stocks / Bonds

Recession 0.2 -5% / 13%

Normal economy 0.7 14 / 10

Boom 0.1 25 / 4

Assume a portfolio 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? (do not round intermediate calculations. enter your answer as a percent rounded to 2 decimal places.)

Reference no: EM132528067

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