2. Consider three bonds having the same characteristics except that: Bond i yields a rate of return 4% with probability 0.4, 10% with probability 0.2 and 12% with probability 0.4 Bond 2 yields a rate of return of 8% with probability 0.8 and a rate of return of 10% with probability 0.2 Bond 3 yields a rate of return 6% with probability 0.7 and 14% with probability 0.3 a. b. c. (i)Calculate the expected return, the variance and the standard deviation on each (ii)If you are a risk-averse person, which bond will you prefer? Explain your (iii) If you are a risk-neutral person, which bond will you prefer? Explain your bond