1) The return on shares of the Orange Company are predicted under the following states of nature. The states of nature are all equally likely, and because there are a total of three states, each state has a 33.333% chance of occurring. Recession -0.12 Normal +0.07 Boom +0.22 What is the standard deviation of Orange? * Place your answer in decimal form, for example as say .0675 and not 6.75.

2)Financial analysts have estimated the returns on shares of Drucker Corporation and the overall market portfolio under various economic conditions as follows. The return for Drucker in the following three economic states of nature are forecasted to be: -20% in recession, +12% in moderate growth, and +30% in a boom. Estimates for the market as a whole in the same economic states are -9% in recession, +9% in moderate growth, and +21% in boom. The analyst considers each state to be equally likely. Using these data, compute the beta of Drucker Corporation's stock.