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Q2. Consider the following scenario analysis concerning stocks and bonds:
| STATE OF ECONOMY | PROBABILITY | RATE OF RETURN (%) |
| STOCK | BOND |
| Bad | 0.25 | -4% | -6% |
| Normal | 0.40 | 10% | 8% |
| Good | 0.35 | 20% | 14% |
You are required to USE TABLES 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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