PART C - NUMERICAL QUESTIONS INSTRUCTION: Read the following questions carefully and write your answers clearly. Show all your workings and calculations. Q1. Consider the following scenario analysis concerning stocks and bonds: STATE OF ECONOMY PROBABILITY RATE OF RETURN (%) STOCK BOND Bad 0.20 -5% 14% Normal 0.50 15% 8% Good 0.30 25% 4% You are required to calculate for both securities: a) The expected returns [2 marks] b) The standard deviations [2 marks] C) The variance [1 marks] d) The coefficient of variation [1 marks]