26. You are considering investing in a project with the following possible outcomes: Probability of Investment States OccurrenceReturns State 1: Economic boom 15% 16% State 2: Economic growth 45% 12% State 3: Economic decline 25% 5% State 4: Depression 15% -5% Calculate the expected rate of return for this investment. A) 9.8% B) 7.0% C) 8.3% D) 6.3% 27. Spartan Sofas, Inc. is selling for $50.00 per share today. In one year, Spartan will be selling for S48.00 per share, and the dividend for the year will be $3.00. What is the cash return on Spartan stock? A) S51.00 B) S1.00 C) $2.00 D) S3.00 You are considering investing in a firm that has the following possible outcomes: Economic boom: probability of 25%; return of 25% Economic growth: probability of 60%; return of 15% Economic decline: probability of 15%; return of-5% 28. What is the standard deviation of returns on the investment? A) 84.75% B) 15.28% D) 9 Roddy Richards invested S12014.88 in Wolverine Meat Distributors (W.M.D.) five years ago. The investment had yearly arithmetic returns of-9.7%,-8.1%, 15%, 7.2%, and 15.4%. 29) What is the arithmetic average return of Roddy Richard's investment? A) 2.42% B) 3.96% C) 5.18%