D BER G towe X X Data Table HE 49 Done DE Viewan Eple Text Pages Finance Calculator Nest Variance and standard deviation (expected). Bacon and Associates, a famous Northwest think tank has provided probability estimates for the four potential economic states for the coming year in the following table. The probability of a boom economy is 21%, the probability of a stable growth economy is 40%, the probability of a stagnant economy is 24%, and the probability of a recession is 15% Calculate the variance and the standard deviation of the three investments stock, corporate bond, and government bond. If the estimates for both the probabilities of the economy and the returns in each state of the economy are correct, which investment would you choose, considering both risk and retum? Hint Make sure to round all intermediate calculations to at least seven (7) decimal places. The input instructions, phrases in parenthesis after each answer box, only apply for the answers you will type What is the variance of the stock investment? % (Round to five decimal places) What is the standard deviation of the stock investment? [ % (Round to two decimal places.) What is the vanance of the corporate bond investment? % (Round to five decimal places) What is the standard deviation of the corporate bond investment? % (Round to two decimal places) What is the variance of the government bond investment? 0% (Round to five decimal places) What is the standard deviation of the government bond investment? 10% (Round to two decimal places.) if the estimates for both the probabilities of the economy and the returns in each state of the economy are correct, which investment would you choose, considering both risk and return? (Select the best response O A. The stock investment would be the best choice because it has the highest volatility and therefore the best chance of a high return OB. The corporate bond would be the best choice because it has the nighest expected return and the lowest risk C. There is not enough information to make this decision D. The government bond would be the best choice because it has the lowest risk re Bil (Click on the following icon in order to copy its contents into a spreadsheet) Investment Stock Corporate bond Government bond Boom 25% 10% 9% Forecasted Returns for bach Economy Stable Growth Stagnant 11% 7% 8% 6% 7% Recension 15% 4% 3% 5%