5.16 You plan to invest $1,000 in a corporate bond fund or in a common stock fund. The following information about the annual return (per $1,000) of each of these investments under different economic conditions is available, along with the probability that each of these economic conditions will occur: Economic Corporate Common Probability Condition Bond Fund Stock Fund 0.10 Recession -70 -300 0.15 Stagnation 30 - 100 0.35 Slow growth 80 100 0.30 Moderate growth 100 150 0.10 High growth 120 350 Compute the a. expected return for the corporate bond fund and for the common stock fund.6.4 Given a standardized normal distribution (with a mean of 0 and a standard deviation of 1, as in Table E.2), deter- mine the following probabilities: a. P(Z > 1.08) b. P(Z 75? b. X 110? d. Between what two X values (symmetrically distributed around the mean) are 80% of the values?5.17 Suppose that in Problem 5.16 you wanted to create a portfolio that consists of the corporate bond fund and the common stock fund. Compute the portfolio expected return and portfolio risk for each of the following situations: a. $300 in the corporate bond fund and $700 in the common stock fund. b. $500 in each fund. Oxy = 4161 c. $700 in the corporate bond fund and $300 in the common stock fund. d. On the basis of the results of (a) through (c), which port- folio would you recommend? Explain.7.16 Given a normal distribution with u = 50 and o = 5, if you select a sample of n = 100, what is the probability that X is a. less than 477 b. between 47 and 49.5? c. above 51.1? d. There is a 35% chance that X is above what value?6.10 A set of final examination grades in an introductory statistics course is normally distributed, with a mean of 73 and a standard deviation of 8. a. What is the probability of getting a grade below 91 on this exam? b. What is the probability that a student scored between 65 and 897 c. The probability is 5% that a student taking the test scores higher than what grade? d. If the professor grades on a curve (i.e., gives A's to the top 10% of the class, regardless of the score), are you better off with a grade of 81 on this exam or a grade of 68 on a different exam, where the mean is 62 and the standard deviation is 3? Show your answer statistically and explain