B Instruction: Complete ALL questions. Question 1 A B. Use an example to explain the relationship among total, systematic and unsystematic risks. (4 marks) Stocks RJR Limited and SJL Limited have the following probability distributions of expected future returns Probability 0.1 0.2 04 02 0.1 RJR Limited SIL Limited -10% -27.5% 2% 12% 1870 20% 22.5% 39% 32.3% Calculate, for stocks RJR and SIL the xpected to return i standard deviation coefficient of variation Which stock should a potential investor opt for? Why? (4 marks) (8 marks) (2 marks) (2 mark (Total 20 marky Active Windows