A stock will provide a rate of return of either 20% or 30%.

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 whole percent.)

Expected return		%
Standard deviation		%

In a recent 5-year period, mutual fund manager Diana Sauros produced the following percentage rates of return for the Mesozoic Fund. Rates of return on the market index are given for comparison.

	1	2	3	4	5
Fund	1.5	+24.1	+42.0	+11.0	+0.5
Market index	0.6	+17.0	+31.5	+10.0	0.4

a. Calculate (a) the average return on both the Fund and the index, and (b) the standard deviation of the returns on each. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

b. Did Ms. Sauros do better or worse than the market index on these measures?

		Mesozoic Fund Return	Market Portfolio Return
a.	Average return
	Standard deviation
b.	Did Ms. Sauros do better or worse than the market index on these measures?	Better