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26) Lakeside Storage Facility is considering two assets, but will acquire only one of them. The assets expected annual rates of retum with related probabilities
26) Lakeside Storage Facility is considering two assets, but will acquire only one of them. The assets expected annual rates of retum with related probabilities are given below. Given this information, answer the following questions (10 points total): Asset A Annual retum. Probability % Asset B Annual return, % Probability% 20 20 (a) Compute the expected annual rate of return for asset A and B (2.5 points) b) Compute the standard deviations of expected returns for asset A and B (2.5 points) (c) Compute the coefficients of variation of return for asset A and B (2.5 points) (d) Given the above results, explain which asset the company should select and why (2.5 points)
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