**1. **Mrs. Yang is considering buying a share of stock in a firm that has the following two possible payoffs with the corresponding probability of occurring. The stock has a purchase price of Php 7.50. You forecast that there is a 30% chance that the stock will sell for Php 15.00 at the end of one year. The alternative expectation is that there is a 70% chance that the stock will sell for Php 5.00 at the end of one year. What is the expected percentage return on this stock, and what is the return variance?

**2.** Mr. Lee is considering buying a share of stock in a firm that has the following two possible payoffs with the corresponding probability of occurring. The stock has a purchase price of Php 25.00. You forecast that there is a 40% chance that the stock will sell for Php 35.00 at the end of one year. The alternative expectation is that there is a 60% chance that the stock will sell for Php 15.00 at the end of one year. What is the expected percentage return on this stock, and what is the return variance?