1. Carson Inc.'s manager believes that economic conditions during the next year will be strong, normal, or weak, and she thinks that the firm's returns will have the probability distribution shown below. What's the coefficient of variation on the firms returns?

Economic Probability Stocks

Conditions of States Return

Strong 30% 32.0%

Normal 40% 10.0%

Weak 30% -16.0%

a. 1.6

b. 2.1

c. 2.6

d. 2.9

e. 3.3