a. Expected Return: Discrete Distribution

A stock's return has the following distribution:

Demand for the Company's Products	Probability of This Demand Occurring			Rate of Return if This Demand Occurs (%)
Weak		0.1		-40%
Below average		0.2		-8
Average		0.4		13
Above average		0.2		40
Strong		0.1		65
		1.0

Calculate the standard deviation. Round your answer to nearest two decimal places.

b. The market and Stock J have the following probability distributions:

Probability	rM	rJ
0.3	16%	19%
0.4	8	5
0.3	18	10

Calculate the standard deviation for the market and Stock J. Round your answer to nearest two decimal places.