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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