1. You hold a portfolio of securities which have had the following annual returns: {4%, 18%, -22%, 0%, 20%, 10%}. You believe that these returns are normally distributed. What is the probability that the return in any given year will exceed two standard deviations above the mean?

Select one:

a. 15.87%

b. 11.78%

c. 2.28%

d. 9.24%

2. For any portfolio of securities where returns are normally distributed, what is the probability that the return in any given year will be either greater than 3 standard deviations above the mean or less than 3 standard deviations below the mean?

Select one:

a. 0.13%

b. 0.26%

c. 0.59%

d. 1.01%

e. 1.18%