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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 0.40

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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 0.40 10% 8% Good 0.35 20% 14% You are required to USE TABLES 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]

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