Suppose that the returns on an investment are normally distributed with an expected return of 10% and standard deviation of 5%. What is the likelihood of making a positive return? (Hint: the area under a curve for 1 std dev is 34.13%, 2 std dev is 47.73% and 3 std dev is 49.87%.)

Question 18 options:

a)

84.13%

b)

2.27%

c)

97.73%

d)

15.87%