Risk and probability Micro-Pub, Inc., is considering the purchase of one of two microfilm cameras, R and S. Both should provide benefits over a 10-year period, and each requires an initial investment of $2,000. Management has constructed the following table of estimates of rates of return and probabilities for pessimistic, most likely, and optimistic results: E . a. Determine the range for the rate of return for each of the two cameras. b. Determine the value of the expected return for each camera. c. Which camera purchase is riskier? Why? a. The range for the rate of return for camera R is %. (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 return for camera R is %. (Round to two decimal places.) The value of the expected return for camera Sis %. (Round to two decimal places.) c. Which camera purchase is riskier? Why? (Select from the drop-down menus.) Click to go back, hold to see history The purchase of is riskier because it has a range for the rate of return. Risk and probability Micro-Pub, Inc., is considering the purchase of one of two microfilm cameras, R and S. Both should provide benefits over a 10-year period, and each requires an initial investment of $2,000. Management has constructed the following table of estimates of rates of return and probabilities for pessimistic, most likely, and optimistic results: E . a. Determine the range for the rate of return for each of the two cameras. b. Determine the value of the expected return for each camera. c. Which camera purchase is riskier? Why? a. The range for the rate of return for camera R is %. (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 return for camera R is %. (Round to two decimal places.) The value of the expected return for camera Sis %. (Round to two decimal places.) c. Which camera purchase is riskier? Why? (Select from the drop-down menus.) Click to go back, hold to see history The purchase of is riskier because it has a range for the rate of return