Escapists Firms Corp. sells home videos. In a boom economy its rate of return is negative 28%, in a normal economy its rate of return is 8% and in a recession its rate of return is 48%. All three possible states of the economy are equally likely. Calculate the expected rate of return and standard deviation of Escapist.
9.33, 31.04
31.04, 9.33
30, 10
31.04