I would like to understand how can I get the solution below?

How they decided mean =150000 and variance =100000^2?

l" mu] 2. (a) An investor is contemplating an investment with a return of .03, where: R = 250.000 -100,000N and N is a Normal [1, 1] random variable. Calculate each of the following measures of risk: (i) variance of return (ii) downside semi-variance of return (iii) shortfall probability. where the shortfall level is .8 50, 000 (iv) Value at Risk (VaR) at the 95% condence level 2. (a) (i) N has a Normal [1,1] distribution, so R has a Normal distribution with mean |50,000 and variance 100, 0002, i.e., R ~ N (150000, 1000002) So the variance retum is 100, 0002 = 10'\". (ii) Any normal distribution is symmetrical about its mean. so that the downside semi-variance ofretum is equal to half ofthe variance. i.e.. 5 x 109. (iii) The shortfall probability, where the shortfall level is50, 000 R 150, 000 50,000 150, 000 f _ P(R(1.6449) = 0.05 So there is a 5% chance of the investment return R having a value less than: R5013 = [1.3 - 1.6449011 = 150,000 1.6449 x 100.000 = 14,490