You are given the following probability distribution for CHC Enterprises:

State of Economy	Probability	Rate of return
Strong	0.15	21%
Normal	0.50	8%
Weak	0.35	-5%

What is the stock's expected return? What is the stock's standard deviation?

Select one:

a.

E(R) = 5.40%; = 8.82%

b.

E(R) = 5.40%; = 0.78%

c.

E(R) = 8.90%; = 0.78%

d.

E(R) = 8.90%; = 8.82%

e.

None of the above