What Is the Expected Return and Standard Deviation for the Following

Multiple Choice

What is the expected return and standard deviation for the following stock? $$\begin{array} { l c c } { \text { State of } } & \text { Probability of } & \text { Rate of Return } \\\text { Econony } & \text { State of Economy } & \text { if State Occurs } \\\text { Boorn } & .06 & - .06 \\\text { Normal } & .74 & .07 \\\text { Recession } & .20 & .18\end{array}$$

A) 8.53 percent; 5.69 percent
B) 8.53 percent; 5.74 percent
C) 8.42 percent; 5.69 percent
D) 8.80 percent; 5.74 percent
E) 8.42 percent; 5.74 percent