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34) FatBarabs, a local restaurant chain, is considering Investing in a new restaurant. They are considering two potential new locations, but have money to acquire

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34) FatBarabs, a local restaurant chain, is considering Investing in a new restaurant. They are considering two potential new locations, but have money to acquire only one of them. The expected annual rates of return with related probabilities for each restaurant are given below. Given this Information, answer the below questions (12.50 points total) Oceanside restaurant Annual return, % Probability,% 14 25 18 50 22 25 Bayside restaurant Annual return, Probability, 40 10 30 70 10 20 (a) Compute the expected annual rate of return for each restaurant (polnts th) Compute the standard deviation of expected return for each restaurant (4 points) 3 Ich Compute the coefficient of variation of return for each restaurant points) (d) Given the above results, explain which restaurant the company should select and why (2.50 points) 5

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