A stock will provide a rate of return of either ?30% or +37%.

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

Expected return = __%
Standard deviation = __%

b.	If Treasury bills yield 3.5% and investors believe that the stock offers a satisfactory expected return, what must the market risk of the stock be?

Market risk = __%