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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