Please answer the questions below for Kuyucakl Yusuf (KY) and Krk Mantolu Madonna (KMM) Corporations: (show all your computations)

a) Compute the expected return of each stock.

KY Inc.:

KMM Inc.:

b) Compute the total risk () of each stock.

KY Inc.:

KMM Inc.:

c) Compute the coefficient of variation of each stock. Evaluate the results.

KY Inc.:

KMM Inc.:

Evaluation:

Economy Probability Recession Average Boom Expected return Expected return KY Inc. KMM Inc. 0,3 -0,42 -0,22 0,4 0,32 0,22 0,3 0,62 0,52