HELP WITH QUESTION 2

1. Please explain what is risk. The textbook pointed out several ways to classify risks. Please describe in detail the classification of risks. Please also identify major personal risks and commercial risks. 2. An investment has probabilities 0.3, 0.4, and 0.3 of giving returns equal to 40%,15%, and -5%. What are the expected returns and the standard deviations of returns? NOTE: Please show the process of how you get to the final answers. Answers only showing numbers without the process will not receive any credit. You may use I, (0.5) as divide, multiplication, and square root respectively. For example, square root of 4 can be illustrated as 4^(0.5)