The return expected from Project No. 542 is 22 percent. The standard deviation of these returns is 11 percent.

The return expected from Project No. 542 is 22 percent. The standard deviation of these returns is 11 percent. If returns from the project are normally distributed, what is the chance that the project will result in a rate of return above 33 percent? What is the probabilitythat the project will result in losses (negative rates of return)?

The given answer is 0.02275 = 0.0228 approximatelyThis answer is in decimals (Base 1)If converted into percentage it will be 0.0228 x 100 = 2.28%(Base 100%)So, 0.0228 = 2.28%The answer may be…

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