PART C - NUMERICAL QUESTIONS INSTRUCTION: Read the following questions carefully and write your answers clearly. Show all your workings and calculations and follow the instructions. Using internet formula to arrive at the answer will not earn you any mark. Q1. Consider the following scenario analysis concerning stocks and bonds: STATE OF ECONOMY|PROBABILITY RATE OF RETURN(%) STOCK BOND Bad 0.25 4% 6% Normal 0.45 10% 8% Good 0.30 20% 14% 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] (RUBRICS: question la and lb carry 2 marks each and Qlc and Id carry 1 mark each. Total marks are (2+2+1+1=6)