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(Related to Checkpoint 7.1) (Expected rate of return and risk) B. J. Gautney Enterprises is evaluating a security. One-year Treasury bills are currently paying 5.4
(Related to Checkpoint 7.1) (Expected rate of return and risk) B. J. Gautney Enterprises is evaluating a security. One-year Treasury bills are currently paying 5.4 percent. Calculate the investment's expected return and its standard deviation. Should Gautney invest in this security? Probability 0.05 0.50 0.40 0.05 (Click on the icon in order to copy its contents into a spreadsheet.) Return - 5% 4% 6% 9% ... a. The investment's expected return is%. (Round to two decimal places.)
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