Stock AAA has the following probability distribution: If economy is good (the probability is 30%), its expected stock return is 30%; if economy is on average (the probability is 40%), its expected stock return is 10%; if economy is bad (the probability is 30%), its expected return is -10%. Find the expected rate of return for stock AAA

Answer is 10%

find the standard deviation (risk) for stock AAA

		13.49%
		14.59%
		15.49%
		16.56%

calculate the coefficient of variation for stock AAA

		1.55
		1.78
		1.99
		0.65