Suppose that investor invested 1000 euros in stocks, sold these stocks for 1750 euros and received dividends of 200 euros from these stocks exactly in 1 year. Suppose that the realized capital gains are immediately taxed at 20% tax rate, while the dividends received are tax-exempt. 

Calculate the investor’s after-tax holding period total return (in euros) from the investment described.

The expected annual nominal rate of return on investment into the pension fund is 5% and the standard deviation of annual nominal rates of return (of investment into this pension fund) is 2%. Suppose that the distribution of annual nominal rates of return of this pension fund is characterized by normal distribution. Suppose that the expected inflation rate for the next year, will be 1%. 

What is the probability that the next year’s nominal annual rate of return on investment into this pension fund will exceed the expected inflation rate?