Given the following possible returns (dividends plus capital gains) over the com- ing year from a $10,000 investment in Ford Motor Company common stock:
State of Economy
|
Probability
|
Return
|
Recession
|
0.20
|
$-1,000
|
Normal year
|
0.60
|
1,500
|
Boom
|
0.20
|
2,500
|
Determine the
a. Expected return
b. Standard deviation of returns
c. Coefficient of variation.