CAPM The Capital Asset Pricing Model (CAPM) is a financial model that assumes returns on a portfolio are normally distributed. Suppose a portfolio has an average annual return of 13% (i.e. an average gain of 13%) with a standard deviation of 39%. A return of 0% means the value of the portfolio doesnt change, a negative return means that the portfolio loses money, and a positive return means that the portfolio gains money. (a) What percent of years does this portfolio lose money, i.e. have a return less than 0%? (b) What percent of years does this portfolio return more than 12%? (c) What percent of years does this portfolio return between 12% and 31%? (d) What is the cutoff for the highest 66% of annual returns with this portfolio? Answers (in progress)