The rate of return on all stocks is normally distributed with x = 10% and = 8%

1: An investor randomly chose one stock at the beginning of the year and holds it for the remainder of the year. What is the probability that the rate of return was at least 9% ?

• 0.7881
• 0.5000
• 0.5987
• 0.5497
• 0.4013

2: Instead, the investor chose 20 stocks at the beginning of the year to hold for the remainder of the year. What is the probability that the average rate of return was at least 9% ?

• 0.7794
• 0.6103
• 0.8665
• 0.3897
• 0.7119