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Paulie invested $60,000 in ABC Corp. and $40,000 in DEF Corp. the return percentages of ABC Corp. and DEF Corp. will vary as shown in

Paulie invested $60,000 in ABC Corp. and $40,000 in DEF Corp. the return percentages of ABC Corp. and DEF Corp. will vary as shown in the information below:

State of Economy

Probability of State

ABC Return

DEF Return

Boom

30%

10%

8%

Good

20%

8%

8%

Poor

30%

6%

7%

Bust

20%

-8%

7%

What is the expected return of Paulies investment?

Group of answer choices

6.95%

5.42%

5.88%

9.12%

Same facts as above: what is the standard deviation of Paulie's investment?

Group of answer choices

0.17%

3.04%

2.68%

4.09%

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