Consider a stock and the following state dependent scenario of returns: the boom state has a 15% probability and returns 60%; the good state has a 50% probability and returns 20%; the recession state has a 25% probability and returns a loss of 10%; and the depression state has a 10% probability and returns a loss of 30%. Calculate the stock's variance.

		.0372
		.0472
		.0572
		.0672
		.0772

Given the following information about Stock X: State of Nature........Probability...... Return Recession............... 50%..............-0.15 Boom.....................50%...............0.23 Which of the following is closest to the standard deviation of Stock X?

		0.0361
		0.19
		0.16
		0.019

An art foundation is considering the following proposal that has been submitted by its members: Purchase a library of animated film classics for $13.224 million today. The collection has to be restored, at no additional cost to the foundation, but will take 3 years to complete before the films are ready to be sold. Beginning at the end of year 4, it is expected that the film's cash flows will be $6 million a year and that this annuity will run for five consecutive years (at the end of year 4 through to the end of year 8). Which of the following comes closest to the project's IRR?

		12%
		15%
		11%
		13%
		14%