# Question: B J Gautney Enterprises is evaluating a security One year Treasury

B. J. Gautney Enterprises is evaluating a security. One-year Treasury bills are currently paying 2.9 percent. Calculate the following investment’s expected return and its standard deviation. Should Gautney invest in this security?

Probability Return

.15 ....... 23%

.30 ....... 2%

.40 ....... 4%

.15 ....... 6%

Probability Return

.15 ....... 23%

.30 ....... 2%

.40 ....... 4%

.15 ....... 6%

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