=+11 Big Trucks ple is considering two major projects. The first is to expand production at the Midlands factory. The second is to start production in the Far East. The returns in terms of internal rates of return depend on world economic growth. These are as follows.

World growth Probability of IRR for Midlands IRR for Far East growth occurring project (%)

project (%)

High 20 50 Medium 0.4 18 30 Low 0.3 16 0

Calculate a

The expected return and standard deviation of each project.