An investor believes that the yields of his mutual funds have a normal distribution with an average yield of 10% and a standard deviation of 2%. The investor would like to identify the stocks which yield the highest 5% to keep in his portfolio. a. Calculate the yield which separates the highest 5% of yields from the lowest 95% of yields. b. If a stock yielded 14% would it be kept? Explain. c. If a stock yielded 13% would it be kept? Explain.

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