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B. J. Gautney Enterprises is evaluating a security. One-year Treasury bills are currently paying 5.5 percent. Calculate the investment's expected return and its standard deviation.
B. J. Gautney Enterprises is evaluating a security. One-year Treasury bills are currently paying 5.5 percent. Calculate the investment's expected return and its standard deviation. Should Gautney invest in this security?
Probability Return
.05 -5%
.45 3%
.45 7%
.05 10%
round to two decimal places
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