3.8 CAPM: The Capital Asset Pricing Model (CAPM) is a financial model that assumes returns on a portfolio are normally

[answerhappygod]

3.8 CAPM: The Capital Asset PricingModel (CAPM) is a financial model that assumes returns on aportfolio are normally distributed. Suppose a portfolio has anaverage annual return of 14.6% (i.e. an average gain of 14.6%) witha standard deviation of 32.7%. A return of 0% means the value ofthe portfolio doesn't change, a negative return means that theportfolio loses money, and a positive return means that theportfolio gains money. (Keep one decimal place.)
a) What percent of years does this portfolio lose money, i.e.have a return less than 0%? %b) What is the cuto↵ for the highest 15% of annual returns withthis portfolio?