What is probability that an investor in tarheel will earn

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The return on the Tarheel Corporation stock is expected to be 14 percent with a standard deviation of 8 percent. The beta of Tarheel is 0.8. The risk-free rate is 7 percent, and the expected return on the market portfolio is 15 percent.

What is the probability that an investor in Tarheel will earn a rate of return less than the required rate of return? Assume that returns are normally distributed.

Reference no: EM131338681

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