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(Expected rate of return and risk) B. J. Gautney Enterprises is evaluating a security. One-year Treasury bills are currently paying 4.4 percent. Calculate the investment's
(Expected rate of return and risk)
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 -5% 0.40 1% 0.50 6% 0.05 9%
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