Problem: Suppose you manage a $1 million investment fund and you estimate the fund's expected return to be 10% with a standard deviation of 4.

Required:

Question 1: What would be the dollar return from the investment if the portfolio's expected return is 10%?

Question 2: What would be the fund's dollar return and rate of return if the rate of return on the fund were one standard normal deviation above its expected return (z = 1)?

Question 3: What would be the fund's dollar return and rate of return if the rate of return on the fund were one standard normal deviation below its expected return (z = -1)?

Question 4: Show the distributions of returns for the fund for z-scores of -2, -1, 0, 1, and 2.

Be sure to support your response with specifics.