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 General Meters Merger with Firm B Possible Earnings ($ in millions) Probability Possible Earnings ($ in millions) Probability $ 35 0.20 $ 35 0.15 40 0.40 40 0.50 45 0.40 45 0.35 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.) b. Assuming investors are risk-averse, which alternative can be expected to bring the higher valuation? multiple choice Merger A Merger B

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 $ 35 0.20 40 0.40 45 0.40 General Meters Merger with Firm B Possible Earnings ($ in millions) Probability $ 35 0.15 40 0.50 45 0.35 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 b. Assuming investors are risk-averse, which alternative can be expected to bring the higher valuation? O Merger A O Merger B