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).

General Meters Merger with Firm A:

Possible Earnings ($ in millions) Probability

$15 0.40

$25 0.50

$35 0.10

General Meters Merger with Firm B:

Possible Earnings ($ in millions) Probability

$15 0.35

$25 0.60

$35 0.05

a. Compute the mean, standard deviation, and coefficient of variation for both investments.