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B Check my work General Meters is considering two mergers. The first is with Firm A in its own volatile industry, the auto speedometer industry,
B Check my work 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 B in an industry that moves in the opposite direction (and will tend to level out performance due to negative correlation) pped General Meters Merger with Firm A Possible Earnings ($ in millions Probability $ 15 0.40 25 0.50 35 e.ie General Meters Merger with Firm B Possible Earnings ($ in millions) Probability $ 15 0.35 25 0.60 35 0.05 BOOK 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 erences b. Assuming investors are risk-averse, which alternative can be expected to bring the higher valuation? Merger A Merger B
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