please answer this question.

2} X is a newly started rm that will sell earthquake insurance in Tokyo. The monthlyr probability of a large earthquake in Tokyo is 1%. If there is no earthquake in a given month1 the stock of X will have a return of 1%. If there is an earthquake, the rm will go into hankrupey 1with a return of 400%. (a) What is the probability that one year will pass without an earthquake? (b) Suppose that one year passes without an earthquake and that a re- searcher wants te evaluate the performance of X using its monthly,r re- turns over that period. What would the researcher estimate the annual expected return and standard deviation to be? (e) What is the true annual expected return and standard deviation of the stock