Question 610 Marks

The probability distribution of the return on an investment in Omega's common stock is as follows:

Return (%) Probability

5 0.05

8 0.25

10 0.4

12 0.25

15 0.05

Required:

6.1.Draw a probability distribution curve and comment on its shape.[2]

6.2.Calculate the expected return, standard deviation of the return, and the coefficient of variation.