Risk and probability Micro-Pub, Inc., is considering the purchase of one of two digital cameras, R and S, each of which 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: 5. 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.) - X Data table (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Camera S Camera R Amount Probability $4,000 1.00 Amount $4,000 Probability 1.00 Initial investment Annual rate of return Pessimistic Most likely Optimistic 17% 28% 31% 0.28 0.45 0.27 22% 26% 35% 0.16 0.56 0.28