What is the probability of Barilaro stock return exceeding

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Question - Barilaro Ltd is a publicly listed company on the Australian Securities Exchange. Barilaro's annual stock returns are assumed to be normally distributed with a mean of 0.08 and a standard deviation of 0.04.

What is the probability of Barilaro's stock return exceeding 12%? Show all working.

What is the probability of Barilaro's stock return being less than -8%? Show all working.

What is the probability of Barilaro's stock return falling between 9% and 13%? Show all working.

Discuss the disadvantages of assuming that stock returns are normally. 

Discuss the difficulties associated with utilising ex-ante measures of risk.

Reference no: EM133069431

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