(Related to Checkpoint 7.1) (Expected rate of return and risk) B. J. Gautney Enterprises is evaluating security. One-year Treasury bills are currently paying 5.0 percent. Calculate the investment's expected return and its standard deviation. Should Gautney invest in this security? Probability Return 0.05 negative 6 % 0.40 4 % 0.50 5 % 0.05 8 %
a. The investment's expected return is nothing%. (Round to two decimal places.)
b. The investment's standard deviation is
nothing%.
(Round to two decimal places.)
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