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 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 return for each camera c. Which camera purchase is riskier? Why? Data Table - X 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 0% (Round to two decimal places.) (Click on the icon located on the top right comer of the data table below in order to copy its contents into a spreadsheet.) Camera R Amount Probability 55 000 1.00 Cameras Amount Probability $5,000 1.00 c. Which camera purchase is riskler? Why? (Select from the drop-down menus) Initial investment Annual rate of return Pessimistic Most likely Optimistic The purchase of is riskier because it has a range for the rate of return 179 25% 32% 0.28 0.44 0 28 23% 28% 35% 025 0.52 0.23 Print Done Done Enter your answer in each of the answer boxes *** Type here to search L O 100% i 3:11 PM 9/11/2020