1. Calculate the expected returns for the following two assets:

Asset A pays a return of $2,500 20% of the time and $750.80% of the time.

Asset B pays a return of $2,000 40% of the and $600 60% of the time.

The expected return for Asset A is $____ (Round your response to the nearest dollar)

2. If a one-year discount bond that pays $1,000 at maturity, is held for the entire year, and the purchase price is $960, then the interest rate is

3. The demand curve and supply curve for one-year discount bonds with a face value of $1,050are represented by the following equations:

Bd:	Price	=	-0.8Quantity+ 1,140
Bs:	Price	=	Quantity+700

The expected equilibrium quantity of bonds is ____

(Round your response to the nearest whole number.)