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B. J. Gautney Enterprises is evaluating a security. One-year Treasury bills are currently paying 5.4 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

5.4 percent. Calculate the investment's expected return and its standard deviation. Should Gautney invest in this security?

Probability

Return

0.10

5%

0.35

4%

0.45

6%

0.10

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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