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	0.60	15%	8%
Good	0.20	25%	4%

You are required to calculate for both securities:

a) The expected returns

b) The standard deviations

c) The variance

d) The coefficient of variation