a) The table below shows the performance of two shares x and y under four different economic conditions and their associated probabilities of occurrence 

Economic condition	Rate of return (%)		Probabilities
Growth Expansion  Stagnation  Recession	x	y	X	y
	18.50 12.75 1.25 -6.00	16.50 14.00 1.80 -4.50	0.25 0.25 0.25 0.25	0.45 0.20 0.20 0.15

Required; 

The expected rate of return for shares x and y.                                             (4 Marks)

The standard deviation of returns for shares x and y.                                     (4 Marks) 

The coefficient of variation of returns for shares x and y.                             (4 Marks)

Advice an investor on the preferred share.                                                     (2 Marks) 

b) Discuss three possible options that a financially distressed firm can avoid a hostile takeover by a rival firm.

                                                                                                                                 (6 Marks)