A REIT (real estate investment trust) had returns of 11 percent, 26 percent, 8 percent, and 38 percent annually for the past 4 years. What is the mean and variance of these returns?

• A. 3.50%; .057319
• B. 1.75%; .057319
• C. 3.50%; .076425
• D. 1.75%; .076425
• E. 3.50%; .062833

A real estate investment is expected to earn 18 percent in a recession, 10 percent in a normal economy, and lose 21 percent in a booming economy. The probability of a boom is 22 percent while the probability of a normal economy is 75 percent. What is the expected rate of return on this investment?

• A. 10.41%
• B. 10.83%
• C. 2.15%
• D. 8.67%
• E. 3.42%