(Related to Checkpoint 7.1) (Expectedrate of return and risk) B. J. Gautney Enterprises is evaluating a security. One-year Treasury bills are currently paying 5.2 percent. Calculate the investment's expected return and its standard deviation. Should Gautney invest in this security? Probability Return 0.10 -6% 0.35 3% 0.45 7% 0.10 8% The investment's standard deviation is______% RUND TO THE 2 decimal place)
(Related to Checkpoint 7.1) (Expectedrate of return and risk) B. J. Gautney Enterprises is evaluating a security. One-year Treasury bills are currently paying 5.2 percent. Calculate the investment's expected return and its standard deviation. Should Gautney invest in this security? Probability Return 0.10 -6% 0.35 3% 0.45 7% 0.10 8% The investment's standard deviation is______% RUND TO THE 2 decimal place)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
(Related to Checkpoint 7.1) (Expectedrate of return and risk)
B. J. Gautney Enterprises is evaluating a security. One-year Treasury bills are currently paying 5.2 percent. Calculate the investment's expected return and its standard deviation. Should Gautney invest in this security?
Probability Return
0.10 -6%
0.35 3%
0.45 7%
0.10 8%
The investment's standard deviation is______% RUND TO THE 2 decimal place)
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