Explain why.

1. You are considering investing in JR stock. Your stockbroker has informed you that the expected return of JR is 16%. Further information reveals that the standard deviation of JR is 8%. Based on the information provided, you believe (3 marks) a) there is a 2.5% chance that the actual return of LBJ next year will be negative. b) there is a 2.5% chance that the actual return of LBJ next year will be positive. a c) there is a 2.5% chance that the actual returns will exceed 32%. d) there is a 32% chance that the actual return of LBJ next year will be outside 0% and 32%. e) (a) and (d) are true. a a