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

1. What is the probability of Barilaros stock return exceeding 12%? Show all working.
2. What is the probability of Barilaros stock return being less than -8%? Show all working.
3. What is the probability of Barilaros stock return falling between 9% and 13%? Show all working.
4. Discuss the disadvantages of assuming that stock returns are normally distributed.
5. Discuss the difficulties associated with utilising ex-ante measures of risk.