Danny Praise Enterprise (ESP) 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 ReturnProbability

Rate of ReturnProbability

8%20%

7%20%

13%60%

17%60%

18%20%

21%20%

i. For each project compute:

(1) The expected rate of return.

(2) The standard deviation of the expected return.

(3) The coefficient of variation of the return.

ii. Which asset should Jordan Enterprise select?