Suppose you have invested 25% of your portfolio in four different stocks. The mean and standard deviation of the annual return on each stock are as shown in the file P12_37.xlsx. The correlations...

Suppose you have invested 25% of your portfolio in four different stocks. The mean and standard deviation of the annual return on each stock are as shown in the file P12_37.xlsx. The correlations between the annual returns on the four stocks are also shown in this file.


a. What is the probability that your portfolio’s annual return will exceed 20%?


b. What is the probability that your portfolio will lose money during the course of a year?