b. Assume that the values are the true expected return and volatility (i.e., estimated without error) and that these returns are normally distributed. For each investment, calculate the probability that an investor will not lose more than 5% in the next year. (Hint you can use the function normdist (x,mean,volatility, 1) in Excel to compute the probability that a normally distributed variable with a given mean and volatility will fall below x.)

Investment	Return	SD	Standard Error	Upper	Lower
Small stocks	18,80%	38,8%	4,18%	27,17%	10,43%	18,80%
S&P 500	12,00%	20,1%	2,17%	16,33%	7,67%	12,00%
Corporate Bonds	6,50%	7,0%	0,75%	8,01%	4,99%	6,50%
Treasury Bills	3,50%	3,1%	0,33%	4,17%	2,83%	3,50%