Assume the probability of a pessimistic,most likely and optimistic state of nature is .25,.45 and .30,and the returns associated with those states of nature are 10%,12%,and 16% for asset X.Based on this information,the expected return and standard deviation of return are:
A)12.0% and 4.0%
B)12.7% and 5.0%
C)12.7% and 4.0%
D)12.0% and 5.0%
E)none of the above

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The Answer of Assume the probability of a pessimistic,most likely and optimistic state of nature is .25,.45 and .30,and the returns associated with those states of nature are 10%,12%,and 16% for asset X.Based on this information,the expected return and standard deviation of return are:
A)12.0% and 4.0%
B)12.7% and 5.0%
C)12.7% and 4.0%
D)12.0% and 5.0%
E)none of the above

Assume the Probability of a Pessimistic,most Likely and Optimistic State