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State 1: Economic boom 18% 20% State 2: Economic growth 42% 16% State 3: Economic decline 30% 3% State 4: Depression 10% -25 You are

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State 1: Economic boom

18%

20%

State 2: Economic growth

42%

16%

State 3: Economic decline

30%

3%

State 4: Depression

10%

-25

You are considering investing in a project with the following possible outcomes Probability of Occurrence States State 1 Economic boom State 2: Economic growth State 3 Economic decline State 4: Depression Calculate the expected rate of return and standard deviation of returns for this investment, respectively 42% 30% 10% O A. 2.18% 1.69% O B. 3.50%, 1.69% OC. 8.72%, 12.99% OD. 7.35%, 12 99%

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