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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 4.2

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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 4.2 percent Calculate the investments expected retum its standard Gautney Invest this Probability Return 0.05 -4% 1% 0.45 0:45 6% 0.05 9% (Click on the icon in order to copy its contents into a spreadshoot) a. The investment's expected retum is%. (Round to two decimal places) (Round to two decimal places) b. The investment's standard deviation is c. Should Gautney invest in this security? (Select the best choice below)

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