If the expected return on the market is 12%, the riskless rate is 4%, the standard deviation of market returns is 25%, the standard deviation of the stock's returns is 35% and the correlation coefficient of returns between the market and the stock is 0.8, what is the expected return for this stock?

a.6.72%

b.11.50%

c.14.32%

d. none of the above

e.12.96%

Your retirement commences at the end of 10 years from now. At the time you plan on a pension of $30,000 per year to be paid at the end of the next 20 years after the year of retirement (i.e. at the end of years 11 to 30). How much do you need to save at the end of years 1 to 10 to fund this pension plan if the appropriate interest rate is 5% EAR?

a. $29,724

b. $27,554

c. none of the above

d. $8,322

e. $19,304