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Could you give me some hints to solve the following problem? Problem 3. A stock price index at time t has the distribution according to

Could you give me some hints to solve the following problem?

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Problem 3. A stock price index at time t has the distribution according to the random variable St : 75 X exp (,ut + (TN/2) where Z has a standard normal distribution and time is measured in years. Parameter values are ,u : 0.15 and a : 0.35 and the stock index pays a continuous dividend at the rate 6 = 0.03. You invest $3,500 in the stock index at time 0 and your dividends are immediately reinvested in the stock index over the life of your investment. ( 1) What is the probability that the one-year total return on your investment is less than or equal to 40%? (216. What is the probability that you lose at least 10% on your initial investment over the year?) (2) What is the 0.10 percentile of your one-year investment total return

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