Given the following probability distribution for assets A and B, compute the expected rate of return, standard deviation, and coefficient of variation for the two assets. Which asset is a better investment from a risk-averse investors perspective? If you equally invest in assets A and B by setting up a portfolio, what will be the portfolio return?

*DO NOT USE EXCEL FOR CALCULATION. YOU NEED TO SHOW YOUR WORKINGS*

Asset A

Return	Probability
7%	0.35
9%	0.40
11%	0.25

Asset B

Return	Probability
5%	0.20
6%	0.10
7%	0.30
8%	0.40