Economic Conditions	Probability	Rate of Return
Strong economy, no inflation	0.31	20%
Weak economy, above-average inflation	0.29	-5%
No major change in economy	0.4	10%

What is the expected return of the economy?

a. 8.55%

b. 8.65%

c. 8.75%

d. 8.85%

e. 9.00%

What is the standard deviation of the expected return?

a. 9.651%

b. 9.731%

c. 9.813%

d. 9.916%

e. 9.987%