Question: A stock will provide a rate of return of either 26% or 39%. a. If both possibilities are equally likely, calculate the stock's expected return

A stock will provide a rate of return of either 26% or 39%.
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 percent rounded to 1 decimal place.)

Expected return %
Standard deviation %

b.

If Treasury bills yield 6.5% 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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