Problem 1 – The normal distribution
Show your work concisely.

If you utilize Excel functions or online calculators specify the function/calculator and ALL inputs.

You may find the reading on probability fundamentals useful in answering part c.
The daily return of a certain stock is normally distributed with a mean of 0.30% and a standard deviation of 2.50%.
(already solved on the quiz) Find the probability that the return on a randomly selected day is negative. ** ** Provide a simple picture of the normal distribution and clearly label what the probability found refers to.
Find the level, L, such that there is a 20% chance that the daily return on a randomly selected day exceeds L.

** Provide a simple picture of the normal distribution and clearly label the value found on the picture.

** Find the probability that the return is negative on each of 4 randomly selected days.