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3. [4 points] You are considering purchasing Coca-Cola stock but would like to know more information about risk and returns before you make the purchase.

3. [4 points] You are considering purchasing Coca-Cola stock but would like to know more information about risk and returns before you make the purchase. Next years possible returns for Coca-Cola and their probabilities of occurring are listed in the table below.

Probabilities Possible Returns

20% 3%

55% 8%

25% 12%

Calculate: a. The expected return for Coca-Cola. b. The standard deviation and coefficient of variation for Coca-Cola.

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