(Related to Checkpoint 7.1) (Expected rate of return and risk) B.J. Gautney Enterprises is evaluating...
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(Related to Checkpoint 7.1) (Expected rate of return and risk) B.J. Gautney Enterprises is evaluating a security. One-year Treasury bills are currently paying 3.8 percent. Calculate the investment's expected return and its standard deviation. Should Gautney invest in this security? Probability Return 0.05 - 6% 0.40 1% 0.50 5% 0.05 8% (Click on the icon - in order to copy its contents into a spreadsheet.) a. The investment's expected return is %. (Round to two decimal places.) Get More Help Clear All Check Answer b. The investment's standard deviation is %. (Round to two decimal places.) c. Should Gautney invest in this security? (Select the best choice below.) O A. Yes. B. J. Gautney Enterprises should invest in this investment because the retun OB. No B. J. Gautney Enterprises should not invest in this investment because there
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