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General Meter is considering two mergers. The first is with Firm A in its own volatile industry; the second is a merger with Firm B
General Meter is considering two mergers. The first is with Firm A in its own volatile industry; 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). General Meter Merger with Firm A Possible Earnings ($ in millions) Probability $50 .20 65 .20 95 .60 General Meter Merger with Firm B Possible Earnings ($ in millions) Probability $50 . 35 70 .30 90 .35 a. Calculate the mean, standard deviation, and coefficient of variation for both investments. (Enter the answers in millions of dollars. Do not round intermediate calculations. Round "Coefficient of variation" to 3 decimal places and "Standard deviation" to 2 decimal places.) Merger A 26.68 Merger B 23.33 Mean Standard deviation 26.31 7.86 Coefficient of variation 0.987 x 0.312 b. Not available in Connect. General Meter is considering two mergers. The first is with Firm A in its own volatile industry; the second is a merger with Firm B in an industry that moves in the opposite direction (and will tend to level out performance due to negative correlation). General Meter Merger with Firm A Possible Earnings ($ in millions) Probability $50 .20 65 .20 95 .60 General Meter Merger with Firm B Possible Earnings ($ in millions) Probability $50 . 35 70 .30 90 .35 a. Calculate the mean, standard deviation, and coefficient of variation for both investments. (Enter the answers in millions of dollars. Do not round intermediate calculations. Round "Coefficient of variation" to 3 decimal places and "Standard deviation" to 2 decimal places.) Merger A 26.68 Merger B 23.33 Mean Standard deviation 26.31 7.86 Coefficient of variation 0.987 x 0.312 b. Not available in Connect
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