9.12 The probability that the economy will experience moderate growth next year is 0.6. The probability of a recession is 0.2, and the probability of a rapid expansion is also 0.2. If the economy falls into a recession, you can expect to receive a return on your portfolio of 5 percent. With moderate growth your return will be 8 percent. If there is a rapid expansion, your portfolio will return 15 percent.

a. What is your expected return?

b. What is the standard deviation of that return?