Please use EXCEL for calculation and show the work clearly. Thank you Question...
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Please use EXCEL for calculation and show the work clearly. Thank you
Question 1. Scenario Probability Recession Normal economy Boom .14 .62 remaining Rate of Return Stocks -5% +15% +25% Bonds +14% +8% +4% a. Calculate Expected rate of return and standard deviation for each investment. b. Which investment would you prefer? Consider a portfolio with weights of .60 in stocks and .40 in bonds. c. What is the rate of return on the portfolio in each scenario? d. What are the expected rate of return and standard deviation of the portfolio? e. Would you prefer to invest in portfolio, in stocks only, or in bonds only
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