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 $5,000. Management has constructed the following table of estimates of rates of return and probabilities for pessimistic, most likely, and optimistic results: EEB a. Determine the range for the rate of return for each of the two cameras b. Determine the value of the expected refum 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 S is b. The value of the expected returm for camera R is The value of the expected return for camera S is c. Which camera purchase is riskier? Why? (Select from the drop-down menus.) The purchase of (Round to the nearest whole number) Data Table Round to two decimal places.) [N (Round to two decimal places (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet) Camera R Camera S Vis riskier because it has a range for the rate of return. Amount Probability Amount Probability 1.00 1.00 Initial investment Annual rate of return Pessimistic Most likely Optimistic $5,000 $5,000 23% 27% 33% 0.23 0.41 0.36 1696 28% 30% 0.19 0.59 0.22