(a1) Your answer is correct Sandra recently invested in real estate with the intention of selling the property one year from today. She has modeled the returns on that investment based on three economic scenarios. She believes that if the economy stays healthy, then her investment will generate a 30 percent retum However if the economy softens, as predicted, the return will be 10 percent, while the return will be -25 percent if the economy slips into a recession. Assume the probabilities of the healthy, soft and recessionary states are 0.4.0.3, and 0.3, respectively Calculate the coefficient of variation for the investment (Round answer to 5 decimal places, eg. 0.07680.) Coefficient of variation 204412 1 Donnais considering investing in a company's stock and is aware that the return on that investment is particularly sensitive to how the economy is performing. Her analysis suggests that four states of the economy can affect the return on the livestment Use the following table of returns and probabilities to determine the coefficient of variation for the investment. (Round answer to 5 decimal places, 3.007680 Probability Return Boom 0 25.00 Good 02 15.00% 0.3 10.00 Slum 0.0 5002 Coefficient of variation George would like to invest in gold and is aware that the returns on such an investment can be quite volatile Use the following table of states, probabilities, and returns to determine the coefficient of variation for the investment. (Round answer to 5 decimal places, es, 0.07680.) Probability Return Boom 0.1 35% Good 0.2 19% Ok 013 109 Level 0.2 5% Slump 02 - 10% Coefficient of variation