morebeans

this is one of the easiest possible questions you could ever hope to get!  if you see this on the exam it will be a gift.  Just look up the definitions of how to compute expected return and standard deviation, for example expected return is the sum of weighted average returns, for 2010 that would be 0.5*12% + 0.5*16% etc.  you can do this for each year then compute the average expected return and use that for the standard deviation calculation…