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B. J. Gautney Enterprises is evaluating a security. One-year Treasury bills are currently paying 4.4 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 4.4 percent. Calculate the investment's expected return and its standard deviation. Should Gautney invest in this security?

Probability Return 0.05 -6% 0.50 3% 0.40 5% 0.05 8%

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