You are confronted with the opportunity to participate in a project with the following known distribution of returns:

State	Prob	Project ROR
1	1/4	20%
2	1/2	15%
3	1/4	-4%

A bank will allow you to borrow -- at 8% -- up to the amount of your own money that you commit to the project (i.e., if you invest, say $10 of your own money, you can borrow another $10 to do the same).

a.) What will be the standard deviation of the ROR you will earn if you borrow the maximum amount?

b.) You decide to invest $100 of your own funds and invest another $100 more of borrowed funds. What will be your wealth position at the project's close if state 3 occurs?