The following table summarizes the average annual return and standard deviation of returns for several types of securities over the past 75 years.

Investment

Small Cap Common Stock .170 .350

Large Cap Common Stock .110 .230

Long Term Bonds .080 .040

Treasury Bills .035 .031

a.) Suppose you invest $10,000 in large cap stocks. Using the historical performance data shown in the table, how likely is it that you will end up making more than $4,400 for the year?

b) Suppose you invest $10,000 in long term bonds. Using the historical performance data shown in the table, how likely is it that you will end up losing at least 2,200 for the year?