1a. If we are given a positive discount rate, which one of the following should be assumed about a project that requires a $100,000 investment at time zero, and then returns $20,000 annually for 5 years?

1b. Riverside stock had returns of 12 percent, -22 percent, 18 percent, 12 percent, and -2 percent over the past five years. What is the standard deviation of these returns?