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

$ $600\mathrm{.}30$ $ $600\mathrm{.}25$

$750\mathrm{.}20750\mathrm{.}30$

$900\mathrm{.}50900\mathrm{.}45$

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