1. Mike Riskless is considering 2 projects. He has estimated the IRR for each project under 3 possible scenarios and assigned probabilities of occurrence to each scenario. (compute your answer using 6 decimals and round your final answer to 2 decimals)

State of Economy	Probability	Estimated ATIRR-I	Estimated ATIRR-II
Optimistic	30%	15%	20%
Most Likely	40%	10%	15%
Pessimistic	30%	5%	5%

Riskless is aware that the pattern of returns for Investment II looks very attractive relative to Investment I. However, he believes that Investment II could be riskier than Investment I. What is the expected return to risk ratio for investment I?