This scenario applies to Questions 13 and 14.

An analyst thinks that the overall growth of the economy will impact the rate of return of the investment portfolio for the next year. Based on historical data, the analyst has developed the following possibilities:

Economic Growth Scenario	Probability	Portfolio Rate of Return
High Growth (More than 4%)	0.35	10%
Moderate Growth (Between 2% and 4%)	0.45	5%
Weak or Negative Growth (Less than 2%)	0.2	-15%

What is the expected rate of return for the next year?

Note: Enter a numerical value only, donotinclude the % sign; and round your response to2digits after the decimal point. For example, you would enter 34.56% (or .3456) as34.56 in the box below. Canvas will also automatically truncate digits after the decimal point ending in zero; for example, if you enter 34.50 as your answer, Canvas will truncate it to 34.5. If you do not follow these formatting and rounding rules, you may not receive credit for your answer.

Based on the scenario in Question 13, what is the standard deviation of this distribution?

Note: Enter a numerical value only, donotinclude the % sign, and round your response to 2digits after the decimal point. For example, you would enter 34.56% (or .3456) as34.56in the box below. Canvas will also automatically truncate digits after the decimal point ending in zero; for example, if you enter 34.50 as your answer, Canvas will truncate it to 34.5. If you do not follow these formatting and rounding rules, you may not receive credit for your answer.

****