Risk and probability Micro Pub, Inc is considering the purchase of one of two microfilm cameras, Rand S. Both should provide benefits over a 10-year period and each requires an initial investment of S4,000 Management has constructed the following table of estimates of rates of return and probabilities for pessimistic, most likely, and optimistic results a. Determine the range for the rate of return for each of the two cameras b. Determine the value of the expected retum for each camera c. Which camera purchase is riskier? Why? a. The range for the rate of return for cameras > (Round to the nearest whole number) (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Camera R Amount Probability $4,000 1.00 Camera S Amount Probability $4,000 1.00 Initial investment Annual rate of return Pessimistic Most likely Optimistic 23% 25% 32% 0.25 0.45 0.30 19% 26% 33% 0.22 0.55 0.23 Print Done