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You are considering investing in JR stock. Your stockbroker has informed you that the expected return of JR is 16%. Further information reveals that the

You are considering investing in JR stock. Your stockbroker has informed you that the expected return of JR is 16%. Further information reveals that the standard deviation of JR is 8%. Based on the information provided, you believe

a) there is a 2.5% chance that the actual return of LBJ next year will be negative.

b) there is a 2.5% chance that the actual return of LBJ next year will be positive.

c) there is a 2.5% chance that the actual returns will exceed 32%.

d) there is a 32% chance that the actual return of LBJ next year will be outside 0% and 32%.

e) (a) and (d) are true.

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