You plan to invest$1,000 in a corporate bond fund or in a common stock fund. The table presents the annual return(per $1,000) of each of these investments under different economic conditions and the probability that each of these economic conditions will occur. Complete parts(a) through(d) below

Probability	Economic_Condition	Corporate_Bond_Fund	Common_Stock_Fund
0.02	Extreme_recession	-350	-999
0.08	Recession	-80	-450
0.2	Stagnation	40	-150
0.3	Slow_growth	80	70
0.3	Moderate_growth	110	200
0.1	High_growth	120	350

a. Calculate the expected return for the corporate bond fund and for the common stock fund.

The expected return for the corporate bond fund is $___ .

The expected return for the common stock fund is $___ .

b. Calculate the standard deviation for the corporate bond fund and for the common stock fund.

The standard deviation for the corporate bond fund is $___ .

The standard deviation for the common stock fund is $___ .

c. Would you invest in the corporate bond fund or the common stockfund? Explain.

Based on the expectedvalue, the corporate bond OR common stockfund should be chosen. Since the standard deviation for the common stock fund is significantly greater than, about the same as OR less than half as much as that for the corporate bondfund, the common stock fund is safer than, is riskier than, OR has the same risk as the corporate bond fund and an investor should carefully weight OR doesn't need to consider the risk when making a decision.

d. If an investor chooses to invest in the common stock fund in(c), what should the investor think about the possibility of losing $999 of every$1,000 invested if there is an extremerecession?

A.The investor would need to assess on how to respond to the almost certainty that almost all of the investment could be lost.

B.The investor would need to assess on how to respond to the almost certainty that about10% of the investment could be lost.

C.The investor would need to assess on how to respond to the small possibility that almost all of the investment could be lost.

D.The investor would need to assess on how to respond to the small possibility that about10% of the investment could be lost.