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(Expected rate of return and risk) Potts Enterprises is evaluating a security. One-year Treasury bills are currently paying 2.9 percent. Calculate the following investment’s expected return and its standard deviation. Should Potts invest in this security?

Probability.             Return

0.15                           3%

0.3                            2%

0.4                           4%

0.15                          6%

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92797211

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