You are required to use a financial calculator or spreadsheet (Excel) to solve 10 problems (provided on page 3) related to the risk and return, stocks and bonds valuation. You are required to show the following 3 steps for each problem (sample questions and solutions are provided for guidance):

(i) Describe and interpret the assumptions related to the problem.

(ii) Apply the appropriate mathematical model to solve the problem.

(iii) Calculate the correct solution to the problem.

3. Analysts predict that over the next year, Thete, Inc.s common stock has a 20% chance of returning 6%, a 50% chance of returning 15%, and a 30% chance of returning 24%. What is the standard deviation of returns on Thete, Inc.s common stock? Submit your answer as a percentage and round to two decimal places.

Note: Table and explantation