A stock will provide a rate of return of either 32% or 34%.

a. If both possibilities are equally likely, calculate the stock's expected return and standard deviation. (Do not round intermediate calculations. Enter your answers as a percentrounded to 1 decimal place.)

Expected return %

Standard deviation %

b. If Treasury bills yield 1% and investors believe that the stock offers a satisfactory expected return, what must the market risk of the stock be? (Enter your answer as a whole percent.)

Market risk %