Suppose that an investor buys sharesinGlobal Ltd on 11th May 2017 at a price of $32.00. The company pays no dividends. Assume that the forecasted possible stock prices are given as follows:

$28.00 with probability one-third $36.00 with probability one-third $44.00 with probability one-third

i.Calculate the investor's expected return. (Answer as a % correct to two decimal places)

ii.Calculate the standard deviation of the stock's return. (Answer as a % correct to two decimal places).

c) Describe how the discount rate used for pricing assets (like bonds and shares)isdetermined.