WITH FORMULAS NOT EXCEL PLEASE

The market is waiting for news about some peace talks. The probabilities for good or bad news as well as the associated rates of return of stocks AIG and Shell are in the table below: Bad Talks will continue Good Very good Probability 0.14 0.33 Rate of return of AIG 14% -6.00% Rate of return of Shell -27% -9.00% 1) Calculate the Expected rate of return of AIG (5 pts) (A) -0.0551 (B) -0.039 [C) -0.0921 (D) -0.1185 2) Calculate the standard deviation of the rate of return of AIG (5 pts) (A) 0.1002 (B) 0.1978 [C) 0.3288 (D) 0.7848 3) Calculate the Expected rate of return of Shell (5 pts) (A) -0.3904 (B) 0.0046 [C) 0.3356 (D) -0.1134 4) Calculate the standard deviation of the rate of return of Shell (5 pts) (A) 0.0772 (B) 0.1067 [C) 0.0343 (D) 0.0884 0.27 2.00% -17.00% 0.26 -17.00% 0.00%