Risk and probability Micro-Pub, Inc., is considering the purchase of one of two microfilm cameras, Rand S. Both should provide benefits over a 10-year period, and each requires an initial investment of $5,000. Management has constructed the following table of estimates of rates of retum 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 rolum for each camera c. Which camera purchase is risk? Why? Data Table The range for the rate of retum for camera RX (Round to the nearest whole number) The range for the rate of return for camera sis(Round to the nearest whole number) b. The value of the expected retum for cameraRis Round to two decimal places.) The value of the expected rotum for camera is % (Round to two decimal places.) c. Which camera purchase is riskier? Why? (Select from the drop-down menus) (Click on the con located on the top right comer of the datatable below in order to copy its contents into a spreadsheet.) Camera R Cameras Amount Probability Amount Probability Initial investment $5.000 1.00 $5,000 1.00 Annual rate of return Pessimistic 16% 0.21 18% 0.23 Most likely 26% 0.40 28% 0.55 Optimistic 31% 0.30 32% 0.22 The purchase of is riskier because it has a range for the rule of retum Print Done