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What are the expected rate of return and standard deviation

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Q: Scenario Probability Stocks Bonds Recession .20 +5 % +19% Normal economy .70 +20 +10 Boom .10 +32 +9

Consider a portfolio with weights of .6 in stocks and .4 in bonds.

a. What is the rate of return on the portfolio in each scenario?

Scenario Rate of Return Recession _________% Normal economy _________% Boom _________%

b. What are the expected rate of return and standard deviation of the portfolio?

c. Which investment would you prefer? Portfolio, or Bonds, or Stocks

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Accounting Basics: What are the expected rate of return and standard deviation

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Accounting Basics: What are the expected rate of return and standard deviation

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