Consider the following scenario analysis:ScenarioRecessionNormal economyBoomRequired AProbability0.30.40.3Assume 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?b. What are the expected rate of return and standard deviation of the portfolio?Rate of ReturnStocksBonds12%73Complete this question by entering your answers in the tabs below.Required BExpected returnStandard deviation-4%1322What are the expected rate of return and standard deviation of the portfolio?Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places%%

When the probability of each scenario along with the weight of each security is incorporated in the…

Consider the following scenario analysis: Scenario Recession Required A Probability 0.3 Normal economy Boom 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? b. What are the expected rate of return and standard deviation of the portfolio? Required B Expected return Standard deviation Rate of Return Stocks -4% 13 22 0.4 0.3 Complete this question by entering your answers in the tabs below. Bonds 12% 7 3 What are the expected rate of return and standard deviation of the portfolio? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal pla % %