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 penod, and each 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: Es 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 Ris%. (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 Ris % (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.) The purchase of is riskier because it has a range for the rate of return SISES Dath aboudoide benefi knd prob we - x Data Table su he si (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) ret Camera R Amount Probability $4,000 1.00 Camera S Amount Probability $4,000 1.00 un Initial investment Annual rate of return Pessimistic Most likely Optimistic tund 24% 26% 30% 0.24 0.38 0.38 21% 27% 33% 0.17 0.52 0.31 sri 15 Print Done of the answer boxes