5. ANNUAL RETURNS ON EQUITY AND INCOME FUNDS The annual rate of return on an equity fund is normally distributed with mean 12% and standard deviation 6%. The annual rate of return on an income fund is normally distributed with mean 10% and standard deviation 2%.

1. What is the probability that the rate of return of the equity fund will exceed 15%?

2. What is the probability that the equity fund will lose money (the annual rate of return will be less than 0)?

3. Find the 90th percentile of the equity fund's rate of return.