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Question 3. (15 marks) St Lucia Water Dragon Ltd. is a company that produces pet foods. The following table contains data on the company

Question 3. (15 marks) St Lucia Water Dragon Ltd. is a company that produces pet foods. The following table contains data on the company and the market. The risk-free rate is 4.00% per annum. State of Economy Probability Market Return Return for St Lucia Water Dragon Burst 20% -20.00% -30.00% Normal 50% 10.00% 15.00% Boom 30% 22.00% 35.00% Covariance: 0.035

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