1. You find a certain stock that had returns of 4 percent, -5 percent, -15 percent, and 16 percent for four of the last five years. The average return of the stock for the 5-year period was 13 percent. What is the standard deviation of the stock's returns for the five-year period?

a. 21.39 percent

b. 34.02 percent

c. 31.23 percent

d. 27.16 percent

e. 24.98 percent

2. You've observed the following returns on Crash-n-Burn Computer's stock over the past five years: 3 percent, -10 percent, 24 percent, 22 percent, and 12 percent. Suppose the average inflation rate over this time period was 3.6 percent and the average T-bill rate was 4.8 percent. Based on this information, what was the average nominal risk premium?

a. 5.15 percent

b. 6.01 percent

c. 5.40 percent

d. 6.60 percent

e. 6.37 percent