1)The rate-of-return probability distributions for the two companies are shown in below.

Demand Probability Rate of return of stock Company -X Rate of return of stock Company -Y

Strong 0.5 85% 30%

Normal 0.2 15% 15%

Weak 0.3 10% 20%

Required:

a)Calculate the expected rates of return for both companiesstock

b)Calculate the risk of company x and companyy stock

c)Calculate the coefficient of variation for both companies stock

d)Which companies stock is more riskier and why?