You are considering the following two mutually exclusive projects. The crossover point is _____ percent and Project _____ should be accepted at a discount rate of 9 percent.

Year	Project A	Project B
0	$69,000	$69,000
1	$29,000	$13,000
2	$24,000	$33,000
3	$27,000	$38,000

• A.

  11.38 percent; A

• B.

  15.68 percent; A

• C.

  11.38 percent; B

• D.

  15.68 percent; B

• E.

  14.02 percent; B

If the economy is normal, Little Town Motors stock is expected to return 14.3 percent. If the economy falls into a recession, the stock's return is projected at a negative 7.22 percent. The probability of a normal economy is 80 percent. What is the variance of the returns on this stock?

• A.

  .094315

• B.

  .007410

• C.

  .073927

• D.

  .100346

• E.

  .008464

A stock produced returns of 14 percent, 17 percent, and -1 percent over three of the past four years, respectively. The arithmetic average for the past four years is 7.17 percent. What is the standard deviation of the stock's returns for the four-year period?

• A.

  9.70 percent

• B.

  11.23 percent

• C.

  15.94 percent

• D.

  6.25 percent

• E.

  11.63 percent