Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. (related to checkpoint 7.6) (expected rate of retu

(Related to Checkpoint 7.6) (Expected rate of return and risk) BJ Gastney Enterprises is evaluating...

90.2K

Verified Solution

Question

Finance

image
(Related to Checkpoint 7.6) (Expected rate of return and risk) BJ Gastney Enterprises is evaluating a security One-year Treasury bills are currently paying 45 percent. Calculate the investment's expected retum and its standard deviation. Should Gautney invest in this secunity Probability Return 0.10 -6% 0.35 19 0.45 7% 0.10 8% (Click on the icon in order to copy its content into a spreadshot) a. The mestment's expected return is % (Round to two decimal places.) b. The investment's standard deviation is % (Round to two decimal places.) c. Should Gautney invest in this security? (Select the best choice below) O A Yes B.J. Gautney Enterprises should invest in this investment because the return is lower than the Treasury bill and the level of nisk higher than the Treasury bill OB. No B.J. Gautney Enterprises should not invest in this investment because the setum is lower than the Treasury bell and the level of risk higher than the Treasury bill 1 1 10 20 21

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

Medical Sciences
1.2K views

Mrs Lee is a 60 years old woman. She is the housewife and lives with his...

General Management
1.2K views

Ø Explain with example the Evolutionary approach . Ø Explain the terms invention and innovation and...

Advance Math
1.2K views

Prove that {??+?:?,???} is dense in ? if and only if  r is an irrational number.

Geometry
1.2K views

Type the correct answer in the box 5 cm 5 cm 12 cm A rectangular...

Basic Math
1.2K views

Help nts DETAILS hine an appropriate viewing rectangle for the function and use it to...

Algebra
1.2K views

Sun piy Tom x 8 Solve for b Do not use a calculator Keep radical...

Accounting
1.2K views

Which of the following statements is true about initial...

Accounting
1.2K views

The Elegant Table sells china, glassware, and other gift items that are subject to an...

Accounting
1.2K views

ProForm acquired 60 percent of ClipRite on June 30, 2017, for $660,000 in cash. Based...

Accounting
1.2K views

What is business ethics? Is it possible to teach ethical behavior in a management accounting...

Accounting
1.2K views

On September 1, 2012, Winans Corporation acquired Aumont Enterprises for a cash payment of $718,430....

Accounting
1.2K views

Please answer all parts of the question. Litton...