Consider the following scenarios for the return on Stock 1 and S&P 500 Index.

State of the World	Probability	Stock 1 Return	S&P 500 Index Return
Depression	0.25	-0.01	-0.05
Normal	0.50	0.04	0.09
Boom	0.25	0.14	0.16

(1 point) Find the expected return on Stock 1.

(2 points) Find the expected return and variance on S&P 500 Index.