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You are considering the risk-return profile of two mutual funds for invastment. The relatively risky fund...

Question

You are considering the risk-return profile of two mutual funds for invastment. The relatively risky fund...

You are considering the risk-return profile of two mutual funds for invastment. The relatively risky fund promises an expected return of 11 1% with a standard deviation of 14.7%. The relatively less risky fund promises an tandard deviation of 4% and 6%, respectively Assume that the returns are approximately normally distributed a-1. Calculate the probability of earning a negative return for each fund (Round final answer to 4 decimal places.) Probability Riskier fund Less risky fund a-2. Which mutual fund will you pick if your objective is to minimize the probability of earning a negative retum? Riskier fund O Less risky fund b.1 Calculate the probability of earning a return above 91% for each fund. places.) Round final answer to 4 decimal Probability Riskier fund Less risky fund b Whichmtual tund will ou bectves to maxinize the probabilily f aning a retun above 91%? Riskier fund O Less risky fund O Type here to search

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