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(Expected rate of return and risk) Carter Inc. is evaluating a security. One-year Treasury bills are currently paying 8.3 percent. Calculate the investment's expected return

(Expected rate of return and risk) Carter Inc. is evaluating a security. One-year Treasury bills are currently paying

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

Probability Return

0.05 5%

0.35 7%

0.55 10%

0.05 16%

Carter Inc. is evaluating a security. One-year Treasury bills are currently paying 8.3percent. What is the investment's expected return?

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