1. There are three states of the economy: Boom Normal and Recession where the probability of each state is 30% 30% and 40% respectively. Calculate the volatility of stock A if it is expected to have 10% return in boom 2% return in normal and -6% return in recession.

Question options:

	0.0010
	0.0013
	0.0017
	0.0021

2. An investment opportunity offers you $1000 per year for forever at 10% rate. What is the price of this investment?

Question options:

	$100
	$1000
	$10000
	$100000