Question 1.

A stock costing K100 pays K5 dividend with every possible outcome. The possible outcomes that the stock might sell for at yearend and the probability of each are:

Year End Price (K)	Probability
90	0.1
95	0.2
100	0.4
110	0.2
115	0.1

1. What is the expected return on the stock?

2. What is the standard deviation of the expected return?