Question: Can you help me work this problem? Any method that shows me how to do it works for me! General Meters is considering two mergers.

 Can you help me work this problem? Any method that shows

Can you help me work this problem?

Any method that shows me how to do it works for me!

General Meters is considering two mergers. The first is with Firm A in its own volatile industry, the auto speedometer industry, while the second is a merger with Firm Bin an industry that moves in the opposite direction (and will tend to level out performance due to negative correlation). General Meters Merger with Firm A Possible Earnings ($ in millions) Probability $ 30 0.10 40 0.40 50 0.50 General Meters Merger with Firm B Possible Earnings ($ in millions) Probability $ 30 0.05 40 0.50 50 0.45 a. Compute the mean, standard deviation, and coefficient of variation for both investments. (Do not round intermediate calculations. Enter your answers in millions. Round "Coefficient of variation" to 3 decimal places and "Standard deviation" to 2 decimal places.) Merger A Merger B Mean Standard deviation Coefficient of variation b. Assuming investors are risk-averse, which alternative can be expected to bring the higher valuation? Merger A Merger B

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