9. If the economy booms, FTX, Inc. stock expects to return 14 percent. If the economy goes into a recessionary period, then FTX expects to only return 4 percent. The probability of a boom is 84 percent while the probability of a recession is 16 percent. What is the variance of the returns on RTF, Inc. stock? What is the Standard Deviation? (6 Points) 2=i=1npi(RiE(R))2 10. Consider an asset (j) with a beta of 1.6, when a risk-free rate of return of government bonds is 6%, and the expected return of the stock market is 14%. What is the expected return of asset j? (5 Points) Formula E(Rj)=Rf+(E(RM)Rf)j 11. Light Manufacturing has a target debt-equity ratio of 0.60. Its cost of equity is 14.0 percent and its cost of debt is 6.0 percent. If the tax rate is 30%, what is the company's weighted average cost of capital (WACC)? (5 Points) Formula: WACC =(E/V)RE+(D/V)RD(1TC)