Suppose the returns on long-term government bonds are normally distributed. Based on the historical record from 1926-2008, long-term government bonds had a mean return of 6.1 percent and a standard deviation of 9.4 percent. Required: (a) Based on the historical record, what is the approximate probability that your return on these bonds will be less than ?3.3 percent in a given year? b) What range of returns would you expect to see 95 percent of the time? c) What range would you expect to see 99 percent of the time? Part 2: A portfolio that combines the risk-free asset and the market portfolio has an expected return of 9 percent and a standard deviation of 13 percent. The risk-free rate is 5 percent, and the expected return on the market portfolio is 12 percent. Assume the capital asset pricing model holds. Required: What expected rate of return would a security earn if it had a .45 correlation with the market portfolio and a standard deviation of 40 percent? Part 3: What are the portfolio weights for a portfolio that has 95 shares of Stock A that sell for $53 per share and 120 shares of Stock B that sell for $29 per share? What is the Stock A Portfolio Weight? What is the Stock B Portfolio Weight