6-3B. (Expected rate ofntlJTn and l-1sk) B.]. wutney Enterprises is evaluating a security. Oneyear Treasury bills are

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6-3B. (Expected rate ofntlJTn and l-1sk) B.]. wutney Enterprises is evaluating a security. Oneyear Treasury bills are currently paying 2.9 percent. Calculate the following investment's expected return and its standard deviation. Should Gaumey invest in this security?

PROBABILITY RETURN

.15 -3%

.30 2%

.40 4%

.15 6%

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Financial Management Principles And Applications

ISBN: 9780131450653

10th Edition

Authors: Arthur J. Keown, J. William Petty, John D. Martin, Jr. Scott, David F.

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