2: Suppose an investor is considering an investment of 200,000 in the stock of XYZ co or ABC co. hoping to gain dividend and selling it at appreciated price after one yr. Over the year it is presumed that the economy will be 20% at boom, 60% at normal and 20% at recession. Calculate the standard deviation and coefficient of variance given the following rate of returns in various economic conditions? {:[" Economic "],[" conditions "]:} Probabilities {:[" Return "],[" of "],[XYZ]:} {:[" Return "],[" of "],[ABC]:} {:[" Expected "],[" return of "],[XYZ]:} {:[" Expected "],[" return of "],[ABC]:} Boom 0.2 10% -4% 2% -0.8% Normal 0.6 11% 20% 6.6% 12% Recessions 0.2 26% 40% 5.2% 8% ER 1 13.8%

2: Suppose an investor is considering an investment of 200,000 in the stock of XYZ co or ABC co. hoping to gain dividend and selling it at appreciated price after one yr. Over the year it is presumed that the economy will be 20% at boom, 60% at normal and 20% at recession. Calculate the standard deviation and coefficient of variance given the following rate of returns in various economic conditions