Assume the return on stocks follows a normal distribution. Is it more likely that a stock will return between -1 and +1 standard deviations from the mean or between -2 and +2 standard deviations from the mean? Why?

Would an investor be likely to prefer a stock that has a smaller standard deviation for annual stock returns or one with a larger standard deviation for annual stock returns? Why?

What are the reasons for calculating portfolio weights? What useful information does this provide to the investor?

What are the advantages and disadvantages of the equal weighting approach and the market cap weighting approach for portfolio allocation strategy?