Billy Ray Valentine is considering two different stocks for potential investment. Information on the stock returns and the return probabilities is provided below. What is the expected return on Stock B?

Stock A		Stock B
Probability	Return	Probability	Return
.30	4%	.25	- 5%
.40	12%	.25	1%
.30	20%	.25	12%
		.25	18%

1. 6.50%
2. 6.75%
3. 7.78%
4. 8.10%
5. 9.45%

Reconsider the information provided in the previous problem. Assume that Billy Ray has determined that the expected (mean) return on Stock A is 12%. Calculate the standard deviation of returns on Stock A.

1. 2.33%
2. 3.44%
3. 5.76%
4. 6.20%
5. 7.75%