James Fromholtz is considering whether to invest in a newly formed investment fund. The fund's investment objective is to aquire home mortgage securities at what it hopes will be bargain prices. The fund sponser has suggested to James that the fund's performance will hinge on how the national economy performs in the coming year. Specifically, he suggested the following possible outcomes:

State of economy	Probability	Fund returns
Rapid expansion and recovery	15%	100%
Modest growth	35%	40%
Continued recession	35%	10%
Falls into depression	15%	-100%

A. Based on these potential outcomes, what is your estimate of the expected rate of return from this investment opportunity? (Round to two decimal places)

B. Calculate the standard deviation in the anticipated returns found in part A.

C. Would you be interested in making such investment?