$($Related to Checkpoint$7\mathrm{.}1)($Expected rate of return and

risk$)$B$.$ J$.$ Gautney Enterprises is evaluating a security. $$

One$-$year Treasury bills are currently paying $5\mathrm{.}2$ percent. Calculate

the$$ investment's expected return and its standard deviation.

Should Gautney invest in this$$ security?$$Probability$$Return

$0\mathrm{.}10-5\%$

$0\mathrm{.}504\%$

$0\mathrm{.}307\%$

$0\mathrm{.}108\%$