$3\mathrm{.}8$ CAPM: The Capital Asset Pricing Model $($CAPM$)$ is a financial model that assumes returns on a portfolio

are normally distributed. Suppose a portfolio has an average annual return of $15\mathrm{.}4\%($i$.$e$.$ an average gain of

$15\mathrm{.}4\%)$ with a standard deviation of $33\mathrm{.}7\%.$ A return of $0\%$ means the value of the portfolio doesn't change,

a negative return means that the portfolio loses money, and a positive return means that the portfolio

gains money. $($Keep one decimal place.$)$

a$)$ What percent of years does this portfolio lose money, i$.$e$.$ have a return less than $0\%?$

$\%$

b$)$ What is the cuto for the highest $15\%$ of annual returns with this portfolio?