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Kathleen has two investment opportunities. She can invest in The Sunglasses Company or the Umbrella...

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Accounting

Kathleen has two investment opportunities. She can invest in The Sunglasses Company or the Umbrella Company. She estimates there is a 50% chance it will remain sunny and Sunglasses Co. stock will rise 25% and Umbrella Co, stock will stay far. She also estimates there is a 50% chance it will rain and Sunglasses Co. stock will remain flat and Umbrella Co. stock will rise by 75%. If she diversifies her investment by putting 50% of her money in each company, what is the expected retum and standard. deviation of her portiollo?O The expected retum is 28.75% and the standard deviation is 10.87%The expected return is 25.00% and the standard deviation is 12.50% The expected return is 25.00% and the standard deviation is 10.87% The expected retur is 28.75% and the standard deviation is 12.50% The expected retum is 21.74% and the standard deviation is 10.87%

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