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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
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. -0.56 -0.36 -0.06 0.06 0.2.6 0.16 0.46 0.26 0.66 0.46 a) Compute the expected return of each stock. (7 pts) WP Inc.: AK Inc.: b) Compute the total risk (C) 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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