1. The average annual return and standard deviation of return are respectively, 5.00% and 5.00%. Assuming annual returns have a normal distribution calculate: a. The probability a 1-year return would be greater than -5.00% and less than 0.00%? b. There is a 50.00% chance your return will be less than what percent? 2. The expected return on the market is 7.00% and T-bill's yield 2.00%. A stock has a beta of 1.40 and pays an end-of-year dividend of 0.50. a. What is the "market risk premium"? b. The expected return on the stock? C. If the expected return on the stock is 8.00% and its price today is 10.00 what is the fair price in 1-year