(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 3.7 percent. Calculate the investment's expected return and its standard deviation. Should Gautney invest in this security? (Click on the icon in order to copy its contents into a spreadsheet.) a. The investment's expected return is (Round to two decimal places.) (Related to Checkpoint 8.3) (Systematic risk and expected rates of return) The following table, , contains beta coefficient estimates for six firms. Calculate the expected increase in the value of each firm's shares if the market portfolio were to increase by 10 percent. Perform the same calculation where the market drops by 10 percent. Which set of firms has the most variable or volatile stock returns? (Calculating rates of return) Blaxo Balloons manufactures and distributes birthday balloons. At the beginning of the year Blaxo's common stock was selling for $17.32 but by year end it was only $15.75. If the firm paid a total cash dividend of $1.89 during the year, what rate of return would you have earned if you had purchased the stock exactly one year ago? What would your rate of return have been if the firm had paid no cash dividend? The rate of return you would have earned is %. (Round to two decimal places.)