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B. J. Gautney Enterprises is evaluating a security. One-year Treasury bills are currently paying 4.9 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
4.9 percent. Calculate the investment's expected return and its standard deviation. Should Gautney invest in this security?
Probability | Return | |
---|---|---|
0.05 | 5 | % |
0.40 | 1 | % |
0.50 | 7 | % |
0.05 | 10 | % |
a.The investment's expected return is (Round to two decimal places.)
b. The investment standard deviation is? (Round to two decimal places.)
c. Should gautney invest in this security?
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