Question: Use the below information to answer the following question(s). Write the answer in percentage format and round to 2nd decimal (Ex. 12.34%) You are considering

Use the below information to answer the following question(s). Write the answer in percentage format and round to 2nd decimal (Ex. 12.34%)

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

STATES

PROBABILITY

A

B

BOOM

10%

25%

-5%

GROWTH

50%

16%

5%

DECLINE

30%

2%

15%

DEPRESSION

10%

-25%

30%
  1. Calculate the expected rate of return for investment B, only
  2. Calculate the standard deviation of returns for investment B.

Please show step by step calculations.

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