3. Consider a biotech company Trulife that develops drugs to cure type two diabetes, pending FDA approval. The result of the clinical trial will be announced next week. Depending on the result of the trial, the stock return of Trulife next week r is described by the following scenario analysis. Scenario Success Inconclusive Failure Probability 0.4 0.4 Possible values 20% 5% -40% 0.2 (a) What is the expected return E(r) for the Trulife stock next week? (5 pts) (b) What is the variance o2 for the Trulife stock next week? (5 pts)