Suppose the following information represents possible future returns for ATT stock next year:

State of Economy	Probability of state of economy	Rate of return if state occurs
1	0.2	12%
2	0.2	6%
3	0.2	-10%
4	0.2	22%
5	0.2	5%
	1

1. What is the expected rate of return for ATT common stock?

2. What is the variance of the return for ATT common stock?