Rate of Return   Scenario Probability Stocks Bonds   Recession .20 ?5 % +14 %   Normal economy .60 +15 +8   Boom .20 +25 +4 Consider a portfolio with weights of .60 in stocks and .40 in bonds. a. What...

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Finance

Rate of Return

  ScenarioProbabilityStocksBonds
  Recession.20?5%+14%
  Normal economy.60+15+8
  Boom.20+25+4
Consider a portfolio with weights of .60 in stocks and .40 inbonds.
a.

What is the rate of return on the portfolio in each scenario?(Do not round intermediate calculations. Enter your answersas a percent rounded to 1 decimal place.)

Scenario       Rate of Return
  Recession%    
  Normal economy%    
  Boom%    
b.

What are the expected rate of return and standard deviation ofthe portfolio? (Do not round intermediate calculations.Enter your answers as a percent rounded to 2 decimalplaces.)

  Expected rate of return%
  Standard deviation%
c.What is the expected rate of return and standard deviation onan all-stock portfolio? An all-bond portfolio? (Do notround intermediate calculations. Enter your answers as a percentrounded to 2 decimal places.)
Expected rate of returnStandard deviation
  100% stock:%  %  
  100% bond:%  %  

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Rate of Return  ScenarioProbabilityStocksBonds  Recession.20?5%+14%  Normal economy.60+15+8  Boom.20+25+4Consider a portfolio with weights of .60 in stocks and .40 inbonds.a.What is the rate of return on the portfolio in each scenario?(Do not round intermediate calculations. Enter your answersas a percent rounded to 1 decimal place.)Scenario       Rate of Return  Recession%      Normal economy%      Boom%    b.What are the expected rate of return and standard deviation ofthe portfolio? (Do not round intermediate calculations.Enter your answers as a percent rounded to 2 decimalplaces.)  Expected rate of return%  Standard deviation%c.What is the expected rate of return and standard deviation onan all-stock portfolio? An all-bond portfolio? (Do notround intermediate calculations. Enter your answers as a percentrounded to 2 decimal places.)Expected rate of returnStandard deviation  100% stock:%  %    100% bond:%  %  

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