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You are considering the risk - return profile of two mutual funds for investment. The relatively risky fund promises an expected return of 1 2

You are considering the risk-return profile of two mutual funds for investment. The relatively risky fund promises an expected return of 12.5% with a standard deviation of 19.2%. The relatively less risky fund promises an expected return and standard deviation of 4.1% and 5.9%, respectively. Assume that the returns are approximately normally distributed.
8-1. Calculate the probability of earning a negative return for ach fund.
Note: Do not round intermediate calculations. Round your final answers to 4 decimal places.
Riskier fund
Less risky fund
Q-2. Which mutual fund will you pick if your objective is to minimize the probability of earning a negative return?
Riskier fund
Less risky fund
calculate the probability of earning a return above 10.5 for each fund
which fund will you pick if your objective is to maximize the probability of earning a return above 10.5%
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