You are considering investing in a project with the following possible outcomes: Calculate the expected rate of return and standard deviation of returns for this investment, respectively.

Probabilities: Boom: 0.15 Normal: 0.4 Decline: 0.25 Depression: 0.2

Returns: Boom: 12% Normal: 7% Decline: 1% Depression: -8%

Answers:

		A) 3.05%, 8%
		B) 2.9%, 5.78%
		C) 4.88%, 7.63%
		D) 3.25%, 6.61%