1. An investment earned the following returns for the years 2013 through 2016:15%, 5%, 30%, and 10%. What is the variance of returns for this investment?

a. 0.1541

b. 0.0892

c. 0.1747

d. 0.0323

e. 0.0117

2. Given the following information, what is the standard deviation of stock A if it has an expected return of 33% in a boom economy, an expected return of 18% in a good economy, and an expected return of 2% in a recession? The probabilities of boom, normal, recession are 0.2, 0.6, and 0.2, respectively.

a. 0.0527

b. 0.0891

c. 0.0981

d. 0.0703

e. 0.0128