Problem 5 The returns for Acme & Bilo are described below. State Probability Acme Bilo Boom 0.3 15% 25% Normal 0.5 10% 10% . Recession 0.2 2% -15% Mark the correct statement. A) Acme has a higher volatility B) Bilo has a higher volatility C) Acme and Bilo have the same volatility D) A diversified investor would never invest in Acme E) A diversified investor would never invest in Bilo