1. The return on shares of the Orange Company are predicted under the following states of nature. The states of nature are all equally likely, and because there are a total of three states, each state has a 33.333% chance of occurring. Recession -0.15 Normal +0.06 Boom +0.21 What is the standard deviation of Orange?

	a	0.04000
	b	0.00048
	c	0.14765
	d	0.06540
	e	0.02180

2) Tacoma Corp.'s stock is $30 per share. Its expected return is 23% and variance is 13%. Element Corp.'s stock is $20 per share. Its expected return is 10% and variance is 7%. Sedes Corp.'s stock is $48 per share. Its expected return is 14% and variance 5%. What would be the expected return of a portfolio consisting of 40.00% Tacoma and 60.00% Element?

	a	15.20%
	b	15.67%
	c	9.12%
	d	6.08%
	e	7.52%