You are considering investing in a project with the following possible outcomes:

Probability of Investment States Occurrence Returns State 1: Economic boom 15% 16% State 2: Economic growth 45% 12% State 3: Economic decline 15% 10% State 4: Depression 25% -5%

Calculate the expected rate of return and standard deviation of returns for this investment.

Select one:

a.

8.05%, 9.0%

b.

7.3%, 7.7%

c.

7.3%, 9.0%

d.

8.05%, 7.7%