Please answer the questions belowfor War and Peace(WP) and Anna Karenina(AK) Corporations: (show all your computations)

put 1 insted of x in every single x

a) Compute the expected return of each stock.

WPInc.:

AKInc.:

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

WPInc.:

AKInc.:

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

WPInc.:

AKInc.:

Evaluation:

Economy Probability Recession Below Average Average Above Average Boom 0.15 0.20 0.25 0.15 0.25 Expected Returns WP Inc. AK Inc. -0.5x -0.3x -0.0x 0.0x 0.2x 0.1x 0.4x 0.2x 0.6x 0.4x