Tesla Manufacturing must choose between two asset purchases for two same projects. The

annual rate of return and the related probabilities given in the following table summarize the

firm's analysis to this point.

Asset A

Rate of return

Probability

-.10%

.01

10

.04

20

.05

30

.10

40

.15

45

.30

50

.15

60

.10

70

.05

80

.04

100

.01

Asset B

Rate of return

Probability

10%

.05

15

.10

20

.10

25

.15

30

.20

35

.15

40

.10

45

.10

50

.05

A: For each project, compute:

(1) The range of possible rates of return.

(2) The expected value of return.

(3) The standard deviation of the returns.

B: Which project would you consider less risky? Why?