Q1. What is the expected return on an Exxon Mobil bond if the return is 12% one-half (50%) of the time and 8% the other half of the time.

10%

15%

12%

8%

Q2. The standard deviation of Exxon Bonds that pay 12% for 50 percent of the time and 8% for the other half of the time would be 2.

True or False