please respond with steps using numbers

2) X is a newly started firm that will sell earthquake insurance in Tokyo. The monthly probability of a large earthquake in Tokyo is 1%. If there is no earthquake in a given month, the stock of X will have a return of 1%. If there is an earthquake, the firm will go into bankrupcy with a return of -100%. (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 to evaluate the performance of X using its monthly re- turns over that period. What would the researcher estimate the annual expected return and standard deviation to be? (c) What is the true annual expected return and standard deviation of the stock? 2) X is a newly started firm that will sell earthquake insurance in Tokyo. The monthly probability of a large earthquake in Tokyo is 1%. If there is no earthquake in a given month, the stock of X will have a return of 1%. If there is an earthquake, the firm will go into bankrupcy with a return of -100%. (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 to evaluate the performance of X using its monthly re- turns over that period. What would the researcher estimate the annual expected return and standard deviation to be? (c) What is the true annual expected return and standard deviation of the stock