Question 1 As the head of Business Development of the BSA, a client has presented a business plan that has the following projected returns from your consideration. Returns State of the Economy Probability Y 0.30 0.20 0.25 0.45 0.15 0.11 0.25 0.01 -0.15 You are required to, a. Calculate the expected return for both Stock X and Stock Y. (6 marks) b. Calculate the standard deviation for both Stock X and Y. (8 marks) c. Determine the coefficient of variation for both Stocks X and Y, explain your answer. (4 marks) d. Calculate the covariance of the portfolio, explain your answer. (4 marks) e. Explain four (4) factors that are considered in choosing between long-term and short-term borrowing. (8 marks) TOTAL: 30 MARKS