show your work. 1) The following table summarizes the average annual return and the standard deviation of returns for several types of securities over the past 75 years. Investment Small-Cap Common Stock Large Cap Common Stock Long-Term Bonds Treasury Bills Mean Returns .170 .110 .080 .035 Standard Deviation .350 .230 .040 .031 Assume annual returns in each case are approximately normal distributed around the mean rate. Using this historical information as the basis for your calculation, what is the probability of loss over the next year if you put all of your money into? a) Small cap stocks b) Large cap stock c) Long term bonds d) Treasury bills 2) Refer to exercise 1 a) Suppose you invest $10,000 in large cap stock. Using the historical performance data showing in the table, how likely is tit that you will end up making more than $4400 for the year