Risk and probability Micro-Pub, Inc., is considering the purchase of one of two digital cameras, R and S. each of which requires an initial investment of $4,000. 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? Data table a. The range for the rate of return for camera Ris_%. {Round to the nearest whicle number.) The range for the rate of return for camera Sis % (Round to the nearest whole number.) b. The value of the expected return for camera Ris%(Round to two decimal places.) The value of the expected return for camera Sis 7% (Round to two decimal places.) c. Which camera purchase is riskier? Why? (Select from the drop-down menus.) The purchase of V is riskier because it has a range for the rate of return. . (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Camera R Amount Probability $4,000 1.00 Cameras Amount Probability $4,000 1.00 Initial investment Annual rate of retum Pessimistic Most likely Optimistic 17% 28% 30% 0.24 0.41 0.35 20% 25% 32% 0.18 0.54 0.28 0 Print Done