2. (3pt) Assume that the equity risk premium is normally distributed with a population mean of 9 percent and a population standard deviation of 25 percent. Over the last three years, equity returns (relative to the risk-free rate) have averaged 3.0 percent. You have a large client who is very upset and claims that results this poor should never occur. Evaluate your clients concerns. A) Construct a 90 percent confidence interval around the population mean for a sample of three-year returns. (25%)/(sqrt30) Confidence interval : -3.0% +- (1 B) What is the probability of a 3.0 percent or lower average return over a three-year period? C) Your client claims an average return of 11 percent or higher is desirable, what is the probability of a 11 percent of higher average return over a three-year period