1. Given the following information, what is the standard deviation for this stock?
Economy Probability Return
Boom 0.25 -0.33
Normal 0.50 -7.95
Recession 0.25 -18.67
2. Which of the following is a security that represents shares of a foreign company, which are held in a bank?
American Depository Receipt (ADR)
Convertible bond
Asset-backed security
Long term equity appreciation securities (LEAPS)