Question: A is correct. Please help with B and also state whether or not Gautney should invest in this security. B. J. Gautney Enterprises is evaluating

A is correct. Please help with B and also state whether or not Gautney should invest in this security.

B. J. Gautney Enterprises is evaluating a 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

6

%

0.45

3

%

0.45

6

%

0.05

10

%

a.The investment's expected return is 4.254.25%. (Round to two decimal places.)

b. The investment's standard deviation is ___%. (Round to two decimal places.)

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