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(Related to Checkpoint 7.6) (Expected rate of return and risk) BJ Gastney Enterprises is evaluating...

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(Related to Checkpoint 7.6) (Expected rate of return and risk) BJ Gastney Enterprises is evaluating a security One-year Treasury bills are currently paying 45 percent. Calculate the investment's expected retum and its standard deviation. Should Gautney invest in this secunity Probability Return 0.10 -6% 0.35 19 0.45 7% 0.10 8% (Click on the icon in order to copy its content into a spreadshot) a. The mestment's expected return is % (Round to two decimal places.) 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 return is lower than the Treasury bill and the level of nisk higher than the Treasury bill OB. No B.J. Gautney Enterprises should not invest in this investment because the setum is lower than the Treasury bell and the level of risk higher than the Treasury bill 1 1 10 20 21

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