Question: please help me i will pot like for u INSTRUCTION: Read the following questions carefully and write your answers clearly to each question. Show all

please help me i will pot like for u

INSTRUCTION: Read the following questions carefully and write your answers clearly to each question. Show all your workings and calculations.

Q1. Consider the following scenario analysis concerning stocks and bonds:

STATE OF ECONOMY

PROBABILITY

RATE OF RETURN (%)

STOCK

BOND

Bad

0.20

--5%

14%

Normal

0.60

15%

8%

Good

0.20

25%

4%

You are required to calculate for both securities:

a) The expected returns [2 marks]

b) The standard deviations [2 marks]

c) The variance [1 marks]

d) The coefficient of variation [1 marks]

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