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1. An asset is forecast to have a return of 30% with aprobability of .5 (50%) and a return of 10% with a probability of.5 (50%). The expected return is 20%. What is the variance of thereturns?a) 0b) none of thesec) 0.1d) 0.012. An asset has a variance of .0009. The standarddeviation of the asset is:a) 0b) 0.3c) 0.003d) 0.033. Which of the following would typically be consideredas an unsystematic risk factor?a) a major product of the firm, accounting for 80% of its sales,is found to be unsafe and may no longer be soldb) gross domestic product is forecast to grow more slowly thanexpectedc) the cost of petroleum is expected to increasesignificantlyd) the federal government increase corporate tax rates by 20percentage points4. An asset with only one possible outcomewoulda) have a zero standard deviationb) have no riskc) have a zero varianced) all of these