1. You are considering investing in JR stock. Your stockbroker has informed you that the expected return of JR is 16%. Further information reveals that the standard deviation of JR is 8%. Based on the information provided, you believe

(A) there is a 2.5% chance that the actual return of LBJ next year will be negative.

(B) there is a 2.5% chance that the actual return of LBJ next year will be positive.

(C) there is a 2.5% chance that the actual returns will exceed 32%.

(D) there is a 32% chance that the actual return of LBJ next year will be outside 0% and 32%.

(E) (a) and (d) are true.

Please show process with the answer