Barilaro Ltd is a publicly listed company on the Australian Securities Exchange. Barilaro's annual stock returns are assumed to be normally distributed with a mean of 0.08 and a standard deviation of 0.04.

a. What is the probability of Barilaro's stock return exceeding 12%? Show all working.

b. What is the probability of Barilaro's stock return being less than -8%? Show all working.

c. What is the probability of Barilaro's stock return falling between 9% and 13%? Show all working.

d. Discuss the disadvantages of assuming that stock returns are normally distributed.

e. Discuss the difficulties associated with utilising ex-ante measures of risk.