PROBLEMS: A firm is considering investing in Asset A. Find the expected return, standard deviation of returns and coefficient of variation for Asset A given: Asset A Returns (%) Possible outcomes Probability Pessimistic GNP Most likely GNP Optimistic GNP The expected return is a. 14% b. 12% c. 16% d 20% 18. The standard deviation is a. 2.828% b. 3.333% c. 1.41% d. NONE a. Yes b. No c. Can Not Be Determined If the firm's average CV is 1.5, is Asset A a good investment? Remember the Smaller the CV the better