8. A stock has an annual return of 15 percent and a standard deviation of 58 percent. What is the smallest expected gain over the next year with a probability of 2.5 percent?

9. Consider the following information for a mutual fund, the market index, and the risk-free rate. You also know that the return correlation between the fund and the market is .97.

Year	Fund	Market	Risk-Free
2008	-18.20%	-35.5%	2%
2009	25.1	20.6	5
2010	13.5	12.7	2
2011	6.8	8.4	6
2012	-1.86	-4.2	3

What are the Sharpe and Treynor ratios for the fund?

Sharpe
Treynor

10. Consider the following information for a mutual fund, the market index, and the risk-free rate. You also know that the return correlation between the fund and the market is .95.

Year	Fund	Market	Risk-Free
2008	-19.40%	-37.5%	1%
2009	25.1	20.8	4
2010	13.7	13.3	2
2011	7.2	8.4	6
2012	-1.98	-4.2	2