Expected

rate of return and

risk)

Carter Inc. is evaluating a security. Given the information in the popupwindow,

, calculate the investment's expected return and its standard deviation.

a. The investment's expected rate of return is

10.00%.

(Round to two decimal places)b. The investment's standard deviation is

(Round to two decimal places)

PROBABILITY RETURN 0.05 5% 0.45 8% 0.45 12% 0.05 15%