The rate of return on the common stock of Space Rock is expected to be 14% in a boom economy, 8% in a normal economy, and only 2% in a recessionary economy. The probabilities of these economic states are 20% for a boom, 70% for a normal economy, and 10% for a recession.

i. What is the variance of the returns on the common stock of Space Rock? ii. What is the standard deviation of the returns on the common stock of Space Rock?

PLEASE SHOW ALL WORK (not excel)