Risk and probability ​Micro-Pub, Inc., is considering the purchase of one of two microfilm​ cameras, R and S. Both should provide benefits over a​ 10-year period, and each requires an initial...

Risk and probability   ​Micro-Pub, Inc., is considering the purchase of one of two microfilm​ cameras, R and S. Both should provide benefits over a​ 10-year period, and each requires an initial investment of

Management has constructed the following table of estimates of rates of return and probabilities for​ pessimistic, most​ likely, and optimistic​ results:

a.  Determine the range for the rate of return for each of the two cameras.

b.  Determine the value of the expected return for each camera.

c.

camera purchase is​ riskier? ​ Why?

a.

range for the rate of return for camera R is

​(Round to the nearest whole​ number.)

The range for the rate of return for camera S is

​ (Round to the nearest whole​ number.)

b.  The value of the expected return for camera R is

​(Round to two decimal​ places.)

The value of the expected return for camera S is

​(Round to two decimal​ places.)

c.

camera purchase is​ riskier? ​ Why?  ​(Select from the​ drop-down menus.)

The purchase of

is riskier because it has a

range for the rate of return.