What comes closest to stock arsquos expected return and

Question

Use the following information of rates of return for Stock A and Stock B to answer;

Probability of State

State of Economy            of Economy                       Return on A                       Return on B

Recession                          .50                                      -0.10                                      0.20

Boom                                  .50                                      0.30                                    - 0.10

What comes closest to Stock A’s expected return and Stock B’s standard deviation?

A. Stock A’s expected return is 10% and Stock B’s standard deviation is 15%

B. Stock A’s expected return is 10% and Stock B’s standard deviation is 2%

C. Stock A’s expected return is 10% and Stock B’s standard deviation is 0%

D. Stock A’s expected return is 15% and Stock B’s standard deviation is 15%

E. Stock A’s expected return is 15% and Stock B’s standard deviation is 0%