current paying its 3.9%

what is the investment return standard deviation

probability

0.20

0.50

0.10

0.20

Return

-6%

4%

5%

9%

in the same order

(Related to Checkpoint 7.1) (Expected rate of return and risk) 8. J. Gautney Enterprises is evaluating a security, One-your Treasury bills are currently paying 3.9 percent. Calculate the investment's expe retum and its standard deviation. Should Gautney invest in this security Return 0.20 0.60 -6% 4% 0.10 5% 0.20 ON (Click on the loon in order to copy its contents into a spreadsheet) GID a. The investment's expected retum is 2.97 % (Round to two decimal places) b. The investment's standard deviation is (Round to two decimal places) e. Should Gautney invest in this security? (Select the best choice below) OA. No. B J. Gautney Enterprises should not invest in this investment because the return is lower than the Treasury bill and the level of risk higher than the Treasury bill OB Yes B. J. Gautney Enterprises should invest in this investment because the retum is lower than the Treasury bill and the level of risk higher than the Treasury bill return and its standard deviation. Should Gautney invest in this security? Probability Return 0.20 -6% 0.50 4% 0.10 5% 0.20 9% (Click on the icon in order to copy its contents into a spreadsheet.) a. The investment's expected return is 2.97%. (Round to two decimal places.) b. The investment's standard deviation is %. (Round to two decimal places.) c. Should Gautney invest in this security? (Select the best choice below.) A. No. B. J. Gautney Enterprises should not invest in this investment because the return is lower OB. Yes. B. J. Gautney Enterprises should invest in this investment because the return is lower tha