Question: B. J. Gautney Enterprises is evaluating a security. One-year Treasury bills are currently paying 2.9 percent. Calculate the following investments expected return and its standard

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%

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