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Expected rate of return and risk for a security

Carter, Inc., is evaluating a security. One-year Treasury bills are currently paying 9.1 percent.

Calculate the investment's expected return and its standard deviation.

Should Carter invest in this security?

PROBABILITY RETURN
.15 6%
.30 9%
.40 10%
.15 15%
Please show work on expected return and standard deviation

Solution Preview

Expected rate of return and risk

Carter, Inc., is evaluating a security. One-year Treasury bills are
currently paying 9.1 percent. Calculate the investment's expected return and its standard deviation.
Should Carter invest in this security?

PROBABILITY RETURN
.15 6%
.30 ...

Solution Summary

This explains the expected rate of return and risk for a security

$2.19