Problem 20-12 Portfolio consideration and risk aversion (LO20-4) 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 Arm Bin an industry that moves in the opposite direction (and will tend to level out performance due to negative correlation) General Meters Merger with Fire A Possible Earnings ($ in millions) Probability $ 35 0.40 55 0.40 75 0.20 General Meters Merger with First Possible Earnings ($ in millions) Probability $ 35 0.35 55 0.50 75 0.15 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