Quiz: Ch 8 Quiz This question: 1 point(s) possible sk and probability Micro-Pub, Inc., is considering the purchase of one of two digital cameras, R and S, each of which requires an initial investment of $3,000. Management has constructed the following table of estimates of rates of re nd probabilities for pessimistic, most likely, and optimistic results: : Determine the range for the rate of return for each of the two cameras. Determine the value of the expected return for each camera. - X Data table Which camera purchase is riskier? Why? (Click on the icon here @ in order to copy the contents of the data table below into a spreadsheet) . The range for the rate of return for camera R is |%. (Round to the nearest whole number.) Camera R Camera S The range for the rate of return for camera S is %. (Round to the nearest whole number.) Amount Probability Amount Probability Initial investment $3,000 1.00 $3,000 1.00 b. The value of the expected return for camera Ris %. (Round to two decimal places.) Annual rate of return Pessimistic 22% 0.26 20% 0.24 The value of the expected return for camera S is %. (Round to two decimal places.) Most likely 29% 0.46 25% 0.56 Optimistic 32% 0.28 35% 0.20 c. Which camera purchase is riskier? Why? (Select from the drop-down menus.) The purchase of is riskier because it has a V range for the rate of return. Print Done Time Remaining: 01:14:45 Next