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

Multiple Choice

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