1. During the past 10 years, the percent returns on two mutual funds (aggressive and passive) expressed in percentages were as follows:

Year	Aggressive Fund	Passive Fund
-10	2%	4%
-9	8%	3%
-8	0%	3%
-7	4%	2%
-6	7%	3%
-5	1%	2%
-4	10%	4%
-3	1%	3%
-2	0%	2%
Last Year	3%	4%

Note that this is a sample of returns.

a) Compute the expected return for the two funds. Round your answers to two decimal places.

Aggressive =

Passive =

b) Compute the variance and standard deviation of the returns of the two funds. Round your answers to two decimal places.

Variance:

Aggressive =

Passive =

Standard Deviation:

Aggressive = %

Passive = %

c)

An investor is considering the purchase of Gryphon stock, which has returns given in the table below.

Scenario	Probability	Rate of Return
Recession	0.26	-2%
Normal Economy	0.56	8%
Boom	0.18	15%

Calculate the expected return and standard deviation of Gryphon. Round your answers to 2 decimal places.

Enter your answers below.

E(r) = %