Question $1$

Ahmad is considering two possible investments, investments in shares of Syarikat Hijau Berhad

$($Hijau$)$ and Syarikat Merah Berhad $($Merah$).$ Table below gives the possible returns and

associated probabilities of shares Hijau and Merah:

From the information given, you are required to answer the following questions.

a$.$ Compute the standard deviation for each share. Clearly state the formula and show your

workings.

$(4$ Marks$)$

b$.$ Compute the coefficient variation for each share. Clearly state the formula and show your

workings.

$(2$ Marks$)$

c$.$ Based on your computation in part $($a$)$ and $($b$),$ inform Ahmad which stock is riskier. Explain

your answer.