Consider the following probability distribution of returns estimated for a proposed project that involves a new MRI machine:

State of the Economy	Probability of Occurrence	Rate of Return
Very poor	0.15	-20.0%
Poor	0.25	0.0
Average	0.15	15.0
Good	0.25	25.0
Very good	0.20	30.0

What is the expected rate of return on the project?

Group of answer choices

8.5%

10.5%

11.5%

12.5%

Question 9

Refer to question 8. What is the project's standard deviation of returns?

Notes. sd: standard deviation; CV: coefficient of variance

Group of answer choices

sd=1.30%, CV=0.10

sd=1.70%, CV=0.14

sd=1.90%, CV=14.78

sd=0, CV=0