QUESTION 4: (10 marks) A financial manager is looking at two mutually exclusive investments offering returns as follows: A B $10,000 $10,000 Project Initial Investment Annual rate of returns & its probabilities Pessimistic Most Likely Optimistic Return % Prob. Return % Prob. 11 0.30 9 0.30 18 18 0.45 0.25 0.45 0.25 22 25 (a) Compute expected rate of return for each investment. (3 marks) (b) Compute variance and standard deviation of rate of return for each investment. (6 marks) (c) Which investment alternative should he choose? (1 mark)