(Related to Checkpoint 7.1) (Expected rate of retum and risk) B J. Gautney Entorpeises is...

70.2K

Verified Solution

Question

Finance

image
(Related to Checkpoint 7.1) (Expected rate of retum and risk) B J. Gautney Entorpeises is eviluating a securify. One-year Treasury bills are carnently paying 2.9 porcant Calculate the imvestmont's expected retum and its standard deviation. Should Gautney invest in this security? a. The investrnents expected return is M. Round to twp docimal places ) b. The investment's standard deviation is Round to two decimal places c. Should Gatney invest in this security? Belect the bust choice betow) A. Yes B. 1. Gautney Enterprises should invept in this investment because the retum is lower than the Tredsury bilt and the level of rokk higher than me Treasury till

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students