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Is it reasonable that treasury bonds provide higher returns

Problem: Consider the following scenario analysis:

Rate of Return
Scenario Probability Stocks Bonds
Recession .20 -5% +14%
Normal economy .60 +15% +8%
Boom .20 +25% +4%

a) Is it reasonable to assume that Treasury bonds will provide higher returns in a recession than in booms? Why?

b) Calculate the expected rate of return and standard deviation for each investment.

c) Which investment would you prefer?

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Finance Basics: Is it reasonable that treasury bonds provide higher returns

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Finance Basics: Is it reasonable that treasury bonds provide higher returns

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