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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

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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 0.15 0.20 0.25 0.15 Expected Returns WP Inc. AK Inc. -0.55 -0.35 -0.05 0.05 0.25 0.15 0.45 0.25 Boom 0.25 0.65 0.45 a) Compute the expected return of each stock. (7 pts) WP Inc.: AK Inc.: b) Compute the total risk (O) 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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