1. Weir Inc.'s stock has a 10% chance of producing a 22% return, a 70% chance of producing a 16% return, and a 20% chance of producing a 13% return. What is the standard deviation (not the variance!) of the returns to Acme’s stock?
2.53%
2.57%
2.45%
2.32%
2.68%
2. Suppose that Acme Inc. had a net income of $19,500 on sales of $325,000 and total assets are $245,000 at the end of the fiscal year. The firm's debt to assets ratio was 45.0%. What is the return on equity? (Hint: use the DuPont relationship and change debt/assets to equity/assets, and finally to assets/ equity)
13.82%
14.47%
15.15%
15.86%
15.27%