Risk and probabilityMicro-Pub, Inc., is considering the purchase of one of two microfilmcameras, R and S. Both should provide benefits over a10-year period, and each requires an initial investment of $2 comma 000

2,000. Management has constructed the following table of estimates of rates of return and probabilities forpessimistic, mostlikely, and optimisticresults: LOADING...

.

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 isriskier? Why?

a.The range for the rate of return for camera R is

11

11%. (Round to the nearest wholenumber.)

The range for the rate of return for camera S is

16

16%. (Round to the nearest wholenumber.)

b.The value of the expected return for camera R is

???