1. Weir Inc.'s stock has a 10% chance of producing a 22% return, a 70% chance of producing a 16% return, and a 20% chance of producing a 13% return. What is the standard deviation (not the variance!) of the returns to Acme’s stock?

2.53%

2.57%

2.45%

2.32%

2.68%

2. Suppose that Acme Inc. had a net income of $19,500 on sales of $325,000 and total assets are $245,000 at the end of the fiscal year. The firm's debt to assets ratio was 45.0%. What is the return on equity? (Hint: use the DuPont relationship and change debt/assets to equity/assets, and finally to assets/ equity)

13.82%

14.47%

15.15%

15.86%

15.27%