The volatility of a share is estimated to be 25% per year. What is the standard deviation of the change in the stock price in two weeks?

	A.	4.90%
	B.	1.57%
	C.	0.48%
	D.	3.47%

The risk-free rate is 4% and the expected return on a stock is 8%. A derivative on the stock can be valued by

	A.	assuming that the expected growth rate for the stock price is 8% and discounting the expected payoff of the derivative at 4%.
	B.	assuming that the expected growth rate for the stock price is 8% and discounting the expected payoff of the derivative at 8%.
	C.	assuming that the expected growth rate for the stock price is 4% and discounting the expected payoff of the derivative at 8%.
	D.	assuming that the expected growth rate for the stock price is 4% and discounting the expected payoff of the derivative at 4%.