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1) Microsoft must choose between two asset purchases. The annual rate of return and related...

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1) Microsoft must choose between two asset purchases. The annual rate of return and related probabilities given below summarize the firm's analysis. Asset A Asset B Rate of Return% Probability% Rate of Return% Probability% 12 25 6 35 115 50 15 25 20 25 25 40 For each asset, compute (a) the expected rate of return, the standard deviation of the expected return, the coefficient of variation of the return (b) Which asset should Microsoft select? (c) if the market return is 20% and beta coefficient is 2, calculate the risk free rate of return for both copier

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