You are considering the risk-return profile of two mutual funds for investment. The relatively risky fund promises an expected return of 12.9% with a...

You are considering the risk-return profile of two mutual funds for investment. The relatively risky fund promises an expected return of 12.9% with a standard deviation of 16.6%. The relatively less risky fund promises an expected return and standard deviation of 3.4% and 5.3%, respectively. Assume that the returns are approximately normally distributed. 

a-1.Calculate the probability of earning a negative return for each fund. (Round final answer to 4 decimal places.)

      Probability  Riskier fund       Less risky fund     

a-2.Which mutual fund will you pick if your objective is to minimize the probability of earning a negative return?

   Less risky fundRiskier fund

b-1.Calculate the probability of earning a return above 10% for each fund. (Round final answer to 4 decimal places.)

      Probability  Riskier fund       Less risky fund     

b-2.Which mutual fund will you pick if your objective is to maximize the probability of earning a return above 10%?

   Less risky fund