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An investor is analyzing the risk of a possible investment by producing three different scenarios....

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Finance

An investor is analyzing the risk of a possible investment by producing three different scenarios. Under a pessimistic scenario, the property would produce a BTIRRp of 8%; a most-likely scenario produces a BTIRRp of 12%. The investor assigns the pessimistic scenario a 25% chance of occurring, the most-likely case a 60% chance of occurring, and the optimistic scenario a 15% chance of occurring with a BTIRRp of 20%. What is the standard deviation of the returns?

0.0125

0.0325

0.0011

0.0090

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