Question: If a companys average expected return is 10% per year, and the standard deviation of returns is 15% annually. What is the rough probability that

If a companys average expected return is 10% per year, and the standard deviation of returns is 15% annually. What is the rough probability that the stock gains more than 40% next year?

  1. 1%

  2. 33%

  3. 5%

  4. 0.5%

  5. 2.5%

This question need a clear mathematical and graphical explanation, only selecting an option will not be considered as a correct answer...

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