You are given some hypothetical data on the holding period returns two stocks, the three possible economic scenarios in which they could be realized as well as their corresponding probabilities. The table below shows all this.

a. Compute the expected rates of return for each stock.

b. Compute the variances and standard deviations for each stock.

c. Compute the coefficients of variation for each stock.

d. Which stock gives you a better risk/return trade-off? Explain.