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,.55 and .20,and the returns associated with those states of nature are 5%,10%,and 13% for asset Y.Based on this information,the expected return,standard deviation,and coefficient of variation for asset Y are:

A) 10.50%,2.96% and 0.395 respectively
B) 10.35%,2.86% and 0.345 respectively
C) 9.55%,2.76% and 0.315 respectively
D) 9.15%,2.66% and 0.295 respectively
E) none of the above