This document asks students to calculate the probabilities of various return thresholds for different investment classes based on their assumed normal distributions of future returns specified by mean and standard deviation in Table 3. Students are asked to find the probability of a loss (return < 0) for each class and assess if the answers are reasonable, as well as the probabilities of returns being greater than 5%, 10%, 20%, and 50% for each class.

1. Course question
For each investment class in Table 3, assume that future returns are normally distributed
with the population mean and standard deviation as given. Based on this assumption:For
each investment class, find the probability of a return that is less than zero (that is, find the
probability of a loss). Is your answer reasonable for all investment classes? Explain. For
each investment class, find the probability of a return that is: Greater than 5%.Greater than
10%. Greater than 20%. Greater than 50%.