What's the variance of the returns on a security given the following information?

State ofEconomy Probability of State of Economy Rate of Return if State Occurs

Boom .10 21%

Normal .65 13%

Recession .25 -8%

A. 124.41

B. 84.52

C. 243.81

D. 96.85

The reward-to-risk ratio is 8.7 percent and the risk-free rate is 4.7 percent. What is the expected return on a risky asset if the beta of that asset is 1.28?

A. 7.92%

B. 12.31%

C. 15.84%

D. 14.76%

A common stock has an expected return of 15.9 percent. The market return is 8.8 percent and the riskfree return is 5.3 percent. What is the stock's beta?

A. 2.95

B. 3.03

C. 2.76

D. 2.25