The expected return and standard deviation of returns of General Mills common stock over the next year

Question:

The and standard deviation of returns of General Mills over the next year are estimated to be 20 percent and 12 percent, respectively. Assume that the returns are approximately normally distributed.
a. Determine the probability of incurring a loss (negative rate of return) from investing in this stock.
b. Determine the probability of earning a rate of return less than the risk-free rate of 6 percent.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these...