A stock has an expected return of .12 and return variance of .25

What is the volatility of this stock return?

	sqrt(.25)=.5=50%
	sqrt(.25-.12)=.361=36.1%
	.25^.25=.0625=6.25%

A stock has normally distributed returns with expected return of 10% and volatility of 15%. What is the probability that the return in a given year is above 40%?

	More than 3%.
	Less than 3%.
	Less than .3%.
	More than 47%.

Stock A has an expected return of 8%, stock B has an expected return of 2%. You have $100. You buy $200 of A and short $100 of B. What is the expected return of your portfolio?

	8%
	2%
	14%
	16%