You are considering the risk-return of two mutual funds forinvestment. The relatively risky fund promises an expected returnof 14.7% with a standard of 15.6%. The relatively less risky fundpromises an expected return and standard deviation of 6.4% and3.8%, respectively. Assume that the returns are approximatelynormally distributed. Using normal probability calculations andcomplete sentences, give your assessment of the likelihood ofgetting, on one hand, a negative return and on the other, a returnabove 10% with these funds. You may choose to use excel normaldistribution formulas, but if you do, give the explicit formulas.Offer some remarks about your possible investment approach.
