1. In 2001, the percentage returns on all the 500 stocks of S&P, were approximately normally distributed with mean 11 and standard deviation 44. (a) An investor invests in a single stock. (i) What will the distribution of his returns be? (ii) What is the probability that the investor will have a return from his stock of more than 60 percent? (iii) What is the probability that he will make a loss of more than 60 percent? (b) Rather than invest in a single stock, the investor now invests in 4 different stocks. Workshop 6 STATOOZZ (i) What will the distribution of mean return on the 4 stocks be? Why? (ii) What is the probability that he will have a mean return on his 4 stocks of more than 60 percent? (iii) What is the probability of a loss of more than 60 percent? (c) Should a cautious investor invest in a single stock or multiple stocks? Why? (consider an investor to be 'cautious' if he wants to minimize the losses