Use the following information for the question. The expected rates of return are 10%, 12%, 16%, 8% and 2%. There are equal probabilities in each case.

In the above case, at 99% level of confidence, the maximum rate of return is:

a. Expected rate of return 3 std deviations

b. Expected rate of return 3 variances

c. Expected rate return + 3 variances

d. Expected rate of return + 3 std deviations

e. Both a and d.

*PLEASE SHOW EXCEL FORMULAS WITH YOUR WORK*