Question 1 Given the following factors for various investment alternatives: State of the Probability T-Bill Yield (%) Market Return economy (%) Recession 10% 8% -13% Below Average 20% 8% 1% Average 40% 8% 15% Above Average 20% 8% 29% Boom 10% 8% 43% Company A Return (%) -22% -2% 20% 35% 50% a) Calculate the expected return and standard deviation for each investment. [3 marks] b) Calculate the coefficient of variation for each investment. What does it measure? How would a risk-averse investor rank these investment alternatives? [6 marks] c) Suppose you would like to create a portfolio from the given investment choices. Explain two situation where expected returns and the standard deviation are sufficient to describe your choice between risky portfolios. [6 marks]