Given the following probability distribution, what are the expected return and the standard

deviation of returns for Security J?

State Pi ri

1 0.3 9%

2 0.2 9%

3 0.5 3%

6.00%; 3.00%

5.50%; 3.30%

6.50%; 3.60%

7.00%; 2.70%

7.50%; 3.90%