1. A stock has the following probability distribution: If economy is good (the probability is 20%), its expected stock return is 20%; if economy is on average (the probability is 60%), its expected stock return is 10%; if economy is bad (the probability is 20%), its expected return is -10%. Find the expected rate of return for the stock.

A) 8%

B) 6%

C) 10%

D) 14%

2. Using the data from Question 1, find the standard deviation (risk) for the stock

A) 9.80%

B)10.29%

C)11.35%

D)12.98%