Question: 00 8. value 1.00 points Problem 11-20 Risk and Return (LO2, 4) A stock will provide a rate of return of either -18% or 26%.

 00 8. value 1.00 points Problem 11-20 Risk and Return (LO2,

00 8. value 1.00 points Problem 11-20 Risk and Return (LO2, 4) A stock will provide a rate of return of either -18% or 26%. a If both possibilities are equally likely, calculate the stock's expected return and standard deviation. (Do not round intermediate calculations. Enter your answers as a whole percent.) % Expected return Standard deviation b. If Treasury bills yield 4% and investors believe that the stock offers a satisfactory expected return, what must the market risk of the stock be? (Enter your answer as a whole percent.) Market risk

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