Use below for Q1-Q5. A venture investor, BKAngel, is considering investing in a software venture opportunity. However, the rate of return to be realized next year is likely to vary with the economic climate that actually occurs. Following are three possible economic outcomes, the probability that each one will occur, and the rate of return projected for each outcome:

Economic Probability of Rate of

Climate Occurrence Return

Recession .20 -20.0%

Normal .50 15.0

Rapid Growth .30 30.0

1.) What is the expected rate of return on the software venture? In percentage, and one decimal place.

2.) Calculate the variance of the rates of return for the software venture? In six decimal places.

3.) Calculate the standard deviation of the rates of return for the software venture? In percentage and in one decimal place.

4.) Calculate the standard deviation of the rates of return for the software venture? In percentage and in one decimal place.