Micro-Pub, Inc., is considering the purchase of one of two digital cameras, R and S, each of which requires an initial investment of $2,000.

Management has constructed the following table of estimates of rates of return and probabilities for pessimistic, most likely, and optimistic results:

	Camera R	Camera S
	Amount	Probability	Amount	Probability
Initial investment	$2,000	1.00	$2,000	1.00
Annual rate of return
Pessimistic	21%	0.22	17%	0.21
Most likely	29%	0.53	27%	0.51
Optimistic	34%	0.25	33%	0.28

.

a.Determine the range for the rate of return for each of the two cameras.

b.Determine the value of the expected return for each camera.

c.Which camera purchase is riskier? Why?

a.The range for the rate of return for camera R is ?%. (Round to the nearest whole number.)