1. Portfolio Returns
A portfolio manager has made an investment that will generate returns that are subject to the state of the economy during the year. Use the following information to calculate the standard deviation of the return distribution for the portfolio.
Economic State	Return	Probability
				E(R)
Weak	13%	0.4		Var(R)
Marginal	20%	0.4		Std(R)
Strong	25%	0.2
Standard Deviation

2. Future Value
You plan to save $1,400 for the next four years, beginning now, to pay for a vacation. If you can invest it at 6 percent, how much will you have at the end of four years?
Future Value