Chip buys a building for $$225,000,20\%$ equity financed and the rest of the cost from borrowed

funds at $7\mathrm{.}5\%.$ We$$re not sure what the building will be worth in one year, but we$$ve narrowed it

to $4$ possibilities, each equally likely: After one year it may be worth $$260,000$ or $$250,000$ or

$$230,000$ or $$200,000.$ What is Chip$$s expected ROE and what is his best possible ROE and

his worst possible ROE?