1. Using Return Distributions Assuming that the returns from holding small-company stocks are normally distributed, what is the approximate probability that your money will double in value in a single year? Triple in value?
2. Distributions In the previous problem, what is the probability that the return is less than 2100 percent? (Think.) What are the implications for the distribution of returns?
3. Determining Portfolio Weights What are the portfolio weights for a portfolio that has 165 shares of Stock A that sell for $43 per share and 120 shares of Stock B that sell for $74 per share?
4. Portfolio Expected Return You own a portfolio that has $2,700 invested in Stock A and $3,800 invested in Stock B. If the expected returns on these stocks are 9.5 percent and 14 percent, respectively, what is the expected return on the portfolio?