Question 1. Suppose that your estimated of the possible one-year returns for investing in the common stock of the Herfy Foods Services Co, and Saudi Ceramic Co. are as follows: Herfy Foods Services Co. Probability of occurrence Possible return 0.05 -8% 0.25 12% 0.3 18% 0.25 25% 0.15 35% Saudi Ceramic Co. Probability of occurrence Possible return 0.1 -8% 0.05 -3% 0.12 8% 0.2 15% 0.25 25% 0.18 30% 0.1 40% a. What are the expected return for both Stocks? b. Calculate the standard deviation of both stocks? c. If you decided to choose in one of the stock, which stock you prefer to invest, and why? Martina Meeming that the CAPM annroach is annronriate compute the required rate of return for