1. An asset has an average return of 10.31 percent and a standard deviation of 22.65 percent. What is the most you should expect to earn in any given year with a probability of 2.5 percent?
A. 55.61%
B. 78.26%
C. 44.29%
D. 66.94%
E. 32.96%
2. At the beginning of the year, Donna's basis in her partnership interest was $100,000. At the end of the year, Donna received a K-1 from the partnership that showed the following information:
Cash Withdrawn: $31,000
Partnership Taxable Income: $60,000
Charitable Contribution: $1,000
What is Donna's basis in her partnership interest at year-end?
A. $128,000
B. $129,000
C. $159,000
D. $160,000