Answer: 0.0013

## Explanation **Step 1: Calculate the Z-score** Given: - Mean (μ) = 17% - Standard deviation (σ) = 4% - Target return = 29% Z-score formula: \(Z = \frac{X - \mu}{\sigma}\) \(Z = \frac{29 - 17}{4} = \frac{12}{4} = 3\) **Step 2: Interpret the Z-score** A Z-score of 3 means the return of 29% is 3 standard deviations above the mean. **Step 3: Find probability from standard normal distribution** We want \(P(X > 29) = P(Z > 3)\) From standard normal distribution tables: - \(P(Z \leq 3) = 0.9987\) - Therefore, \(P(Z > 3) = 1 - P(Z \leq 3) = 1 - 0.9987 = 0.0013\) **Step 4: Convert to percentage** 0.0013 = 0.13% **Why other options are incorrect:** - **B (0.01)**: This corresponds to approximately 2.33 standard deviations, not 3 - **C (0.13)**: This is 13%, which is the percentage form (0.13%) but incorrectly expressed as a decimal - **D (0.0525)**: This corresponds to approximately 1.62 standard deviations The correct probability is 0.0013 or 0.13%.

Author: Nikitesh Somanthe