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Risk and probability Micro - Pub, Inc, is considering the purchase of one of two digital cameras, R and S , each of which requires
Risk and probability MicroPub, Inc, is considering the purchase of one of two digital cameras, and each of which requires an initial investment of $ Management has constructed the following table of estimates of rates of return and probabilities for pessimistic, most likely, and optimistic results:
a Determine the range for the rate of return for each of the two cameras.
b Determine the value of the expected retum for each camera.
c Which camera purchase is riskier? Why?
a The range for the rate of return for camera is Round to the nearest whole number.
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