Suppose that returns for Firm X are normally distributed with a mean of 12% and a standard deviation of 10%. Assuming that this distribution is maintained into the future, respond to the following questions.
a. What is the probability of occurrence of a return less than 2 %? Make a sketch showing your answer as an area under the normal curve.
B. What is the probability of occurrence of a return greater than 32%? Make a sketch showing your answer as an area under the normal curve.