A stock price is currently $40. Assume that the expected return from the stock () is 16% and its volatility () is 25%. a) What is the probability distribution for the continuously compounded rate of return earned over a one-year period (define the probability distribution with its mean and standard deviation)? b) Construct a 95% confidence interval for the cont. the compounded return realized over one year. (Hint: the 95% confidence interval for a normally distributed variable is [1.96..;+1.96..])