Two large, publicly owned firms are contemplating a merger. No operating synergy isexpected. However, because returns on the two firms are not perfectly positively correlated,the standard deviation of earnings would be reduced for the combined corporation. Onegroup of consultants argues that this risk reduction is sufficient grounds for the merger.Another group thinks that this type of risk reduction is irrelevant because stockholders canhold the stock of both companies and thus gain the risk-reduction benefits without all thehassles and expenses of the merger. Whose position is correct? Explain.

General Meters is considering two mergers. The first is with Firm A in its own volatile industry, the auto speedometer industry, while the second is a merger with Firm B in an industry that moves in the opposite direction (and will tend to level out performance due to negative correlation). \table [[General Meters Merger with Firm A, General Meters Merger with Firm B,], [Possible Earnings ($ in, Possible Earnings ($ in,,,], [millions), Probability,0.20, $20, Probability], [$ 20, 0.40, 35, 0.15,], [35, 0.40, 50, 0.50,], [50,, 0.35,,]] a. Compute the mean, standard deviation, and coefficient of variation for both investments Note: Do not round intermediate calculations. Enter your answers in millions. Round "Coefficient of variation" to 3 decimal places and "Standard deviation" to 2 decimal places. \table[[, Merger A, Merger B], [Mean,,], [Standard deviation,,], [Coefficient of variation,,]] b. Assuming investors are risk-averse, which alternative can be expected to bring the higher…

What are some advantages of invetsting in industy competitors? ie., You own stock in Walgreens and you also choose to invest in a competitor such as CVS How would investing in an industry's competitor help ensure a satisfactory return even if the original company's value depreciates?

Please provide detailed instructions to help me solve this problem .. I’m confused on solving both the ROI. I need the instructions and formulas.