Molex Group must choose between two asset purchases. The annual rate of return and related probabilities are given below summarize the firm's analysis.

REQUIRED:

i. Calculate the expected rate of return.

ii. Calculate the standard deviation of the returns.

iii. Calculate the coefficient of variation of the return

iv. Which asset should Molex Group select and why?

Asset X Return (%) Probability 8 0.10 9 0.20 11 0.30 12 0.40 Asset Y Return (%) Probability 10 0.25 11 0.35 12 0.40