Assume That the Rate of Return on Calengry Common Stock

Multiple Choice

Assume that the rate of return on Calengry common stock over the coming year is normally distributed with an expected value of 16% and a standard deviation of 20%. What is the probability of earning a negative rate of return? (Note: Table V is required to work this problem.)

A) 10.56%
B) 40.13%
C) 21.19%
D) 3.59%