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Reed to Checkpoint 7.1 Expected rate of return and risk) B. J Gautney Enterprises is evaluating a security One year Treasury hills are currently paying

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Reed to Checkpoint 7.1 Expected rate of return and risk) B. J Gautney Enterprises is evaluating a security One year Treasury hills are currently paying 49 percent Calculate the investment's expected robum and its standard deviation Should Guney invest in this security Probability 0.10 035 0.45 0.10 Return -4% 14 7 a. The investment's expected return is (Hound to two decimal places) b. The investment's standard deviation is Is Round to two decimal places c. Should Gautney invest in this security? (Select the best choice below) O No B1. Cautney Enterprises should not invest in this investment because the ratum is lower than the Treasury bill and the level of risk Higher than the Treasury bil OB. Yes B. J.Guney Enterprises should invest in this investment because the retum is lower than the Treasury bit and the level of the higher than the Treasury but

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