Question 1

1. You have invested in a stock with an expected return of 14% and a standard deviation of 7%. Your target rate of return is 7%. What is the probability that you will not meet your objective, assuming stock returns are normally distributed?

   	1.	16.0%
   	2.	16.8%
   	3.	17.5
   	4.	18.2%
   	5.	18.8%

Question 2

An investment strategy has an expected return of 10 percent and a standard deviation of 12 percent. If investment returns are normally distributed, the probability of earning a return more than 30 percent is closest to:

1. 4% 2. 6% 3. 5% 4. 7%