1. Below are the historical arithmetic average returns and standard deviations for different asset classes.

Asset class	Mean return	Standard deviation
T-bills	0.035	0.031
Corporate bonds	0.063	0.084
Small company stocks	0.169	0.323
Large company stocks	0.121	0.202

Assume that the returns are normally distributed. Use Excel's NORM.DIST() function to answer the following questions.

a. What is the probability that the return on corporate bonds will be less than 4%?

b. What is the probability that the return on small company stocks will be less than 4%?

c. What is the probability that the return on large company stocks will be greater than 20%?

2. Meraki Inc. has an expected annual return of 8% with a standard deviation of 13%. Assume returns are normally distributed.

a. What is the probability of earning a return between -5% and 21%?

3. Investing Shark Burgers has an expected annual return of 28% and a standard deviation of 14%.

a. What is the probability of losing money on this investment? Assume that returns are normally distributed.

4. Meraki Inc. has an expected annual return of 8% with a standard deviation of 33%. Assume returns are normally distributed.

a. What is the probability of earning a return less than -25%?

b. What is the probability of earning a return less than 74%?

c. What is the probability of earning a return between -25% and 74%?