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A private equity firm is evaluating two alternative investments. Although the returns are random, each investment's return can be described using a normal distribution. The

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A private equity firm is evaluating two alternative investments. Although the returns are random, each investment's return can be described using a normal distribution. The first investment has a mean return of $2,250,000 with a standard deviation of $175,000. The second investment has a mean return of $2,425,000 with a standard deviation of $300,000. Complete parts a through c below. a. How likely is it that the first investment will return $1,900,000 or less? The probability is 0.0228 (Round to four decimal places as needed ) b. How likely is it that the second investment will return $1,900,000 or less? The probability is 0.0401 (Round to four decimal places as needed.) c. If the firm would like to limit the probability of a return being less than $1,725,000, which investment should it make? The probability of a return being less than $1,725,000 is with the first investment and with the second investment, so the firm should make the investment. (Round to four decimal places as needed.)

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