QUESTION 3: Great Wall Corporation is a business dealing in stationery. In their search, they have estimated the following the following contingent returns: State of the Probability that Stock Market Great Wall Market State Occurs Return Return Percent Stagnant 0.20 -10% -15% Slow growth 0.35 10% 15% Average growth 0.30 15% 25% Rapid growth 0.15 25% 35% Required: (a) What are the expected returns on the stock market and on Great Wall? (4 marks) (b) What is the standard deviation of returns for the stock market and the Great Wall? (4 marks) (c) What is the coefficient of variation between the stock market and the Great Wall? (4 marks) (d) Which is a better investment