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begin{tabular}{lcccc} hline & multicolumn{2}{c}{ Camera R } & multicolumn{2}{c}{ Camera 8 } cline { 2 - 5 } & Amount & Probability & Amount

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\begin{tabular}{lcccc} \hline & \multicolumn{2}{c}{ Camera R } & \multicolumn{2}{c}{ Camera 8 } \\ \cline { 2 - 5 } & Amount & Probability & Amount & Probability \\ \hline Inifial investment & $2,000 & 1.00 & $2,000 & 1.00 \\ Annual rate of retum & & & & \\ Pessimistic & 19% & 0.28 & 17% & 0.25 \\ Most Ekely & 27% & 0.39 & 28% & 0.57 \\ Optimistic & 30% & 0.35 & 32% & 0.18 \\ \hline \end{tabular} Risk and probability Micro-Pub, Inc., is considering the purchase of one of two digital cameras, R and 8 , each of which requires an initial investment of $2,000. Manogerrent has constructed the following table of estimates of rates of return and probablitios for pessimistic, most likaly, and optimistio results: a. Determine the range for the rate of return for each of the two cameras. b. Determine the value of the expected retum for ench camera. c. Which camera purchase is riskier? Why? a. The range for the rate of retum for camera R is K. (Round to the nearest whole number) The range for the rate of rotum for camers S is \%. (Round to the nearost whole number) b. The value of the expected rotum for camera R is \%. (Round to two decimal places.) The value of the expocted retum for camern 3 is \%. (Round to two decimal places) c. Which camera purchase is riskien Why? (Select from the drop-down menus.) The purchase of is riskier because it has a range for the rate of retum

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