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Q1: A project has a 0.7 chance of doubling your investment in a year and a 0.3 chance of halving your investment in a year.

Q1: A project has a 0.7 chance of doubling your investment in a year and a 0.3 chance of halving your investment in a year. What is the standard deviation of the rate of return on this investment?

Q2: Assume the risk-free rate of a stock is 8% and the expected rate of return on the market is 18%. If the stock has an expected return of 6%. What is its beta?

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