XYZ Ltd has to choose between two asset purchases. The annual rates of return and related probabilities below summarise the firm$$s analysis:

Asset A Asset B

Rate of return Probability Rate of return Probability

$10\%30\%5\%40\%$

$15\%40\%15\%20\%$

$20\%30\%25\%40\%$

$4\mathrm{.}1\mathrm{.}1$ For each asset calculate the Expected rate of return and the standard deviation. $(10)$

$4\mathrm{.}1\mathrm{.}2$ From your calculations in question $4\mathrm{.}1\mathrm{.}1$ above state which asset you would select and justify your answer