1. A risky asset has an expected rate of return of 10% and standard deviation of 20% while the risk-free asset has an expected return of 5%. If 80% of your portfolio is invested in the risky asset and 20% in the risk-free asset, the expected returns of the portfolio are ________ and standard deviation of your portfolio is ___________.

8% ; 8%

9% ; 16%

8% ; 16%

9% ; 8%

2. What's the future value of a 3%, 5-year ordinary annuity that pays $800 each year? Round your answer to the nearest cent.

If this was an annuity due, what would its future value be? Round your answer to the nearest cent.