Consider the following scenario analysis: Scenario Probability Stocks Bonds Recession 0.20 - 8% +17% Normal Economy 0.20 +12 + 9 Boom 0.60 +28 +7 Note: No need to enter currency symbol and comma and %...

Consider the following scenario analysis:

Scenario                        Probability              Stocks                       Bonds

Recession                          0.20                       - 8%                          +17%

Normal Economy              0.20                       +12                            + 9

Boom                                 0.60                       +28                            +7

Note: No need to enter currency symbol and comma and % just type numbers with nearest round off number and percentages (for example: 10000 or 10000.65=10001 or 10.65%=11)

a. Calculate the expected rate of return

Stock

Bond

b. Calculate standard deviation for each investment?

Stock

Bond

c. Calculate Coefficient of Variation

Stock

Bond

Consider a portfolio with weights of 0.60 in stocks and 0.40 in bonds.

d. What is the rate of return on the portfolio?

Portfolio

e. What is the expected rate of return and standard deviation of the portfolio?

Portfolio

f. Calculate Coefficient of Variation

Portfolio