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I just need part B Consider the following scenario analysis: ...

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Finance

I just need part B

Consider the following scenario analysis:

Rate of Return
Scenario Probability Stocks Bonds
Recession 0.3 -5 % 12 %
Normal economy 0.6 13 9
Boom 0.1 24 3

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? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

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