Solution) (Expected rate of return and risk) Carter Inc. is evaluating a security. One-year Treasury bills are
Question: (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 9%
.40 10%
.15 15%
Price: $2.99
Solution: The solution consists of 2 pages
Deliverable: Word Document![](/images/msword.png)
Deliverable: Word Document
![](/images/msword.png)