Question: X = 6 2) Please answer the questions below for War and Peace (WP) and Anna Karenina (AK) Corporations: (show all your computations) Economy Probability

 X = 6 2) Please answer the questions below for War

X = 6

2) Please answer the questions below for War and Peace (WP) and Anna Karenina (AK) Corporations: (show all your computations) Economy Probability Recession Below Average Average Above Average Boom 0.15 0.20 0.25 0.15 0.25 Expected Returns WP Inc. AK Inc. -0.5x -0.3x -0.0x 0.0x 0.2x 0.1x 0.4x 0.2x 0.6x 0.4x a) Compute the expected return of each stock. (7 pts) WP Inc.: AK Inc.: b) Compute the total risk () of each stock. (7 pts) WP Inc.: AK Inc.: c) Compute the coefficient of variation of each stock. Evaluate the results. (6 pts) WP Inc.: AK Inc.: Evaluation

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