1. Champion Breweries must choose between two asset purchases. The annual rate of return and related probabilities given below summarize the firms analysis.

Asset A				Asset B
Rate of Return		Probability		Rate of Return		Probability
10%		30%		5%		40%
15		40		15		20
20		30		25		40

For each asset, compute

(a) the expected rate of return.

(b) the standard deviation of the expected return.

(c) the coefficient of variation of the return.

(d)Which asset should Champion select?

(e)Find the expected rate of return for the portfolio assuming investor invests 60 percent of its money in asset A and 40 percent in asset B.