(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 5.2 percent. Calculate the investment's expected return and its standard deviation. Should Gautney invest in this security?

Probability Return 0.10 -5% 0.50 4% 0.30 7% 0.10 8%