Temoc is a high tech company that has recently gone public, and trades using the symbol TEMO. Comet is a rival high tech company that has also recently gone public, and trades using the symbol COME. Currently, the price of one share of each company is $10. Based on extensive market research and financial analysis, you have forecast that the price of one share of TEMO one year from now can be modeled as a normal distribution, with mean $12 and standard deviation $3. To put this formally, let T (1) represents the price of one share of TEMO one year from now. Then, T (1) ~ N(12, 3). Similarly, you have forecast that (1) ~ (12, 4). Also, assume that the two stocks are independent of each other.

Investor B’s portfolio consists of 300 shares of TEMO and 400 shares of COME. What is the probability that Investor B’s portfolio is worth more than $8,000 one year from now?

(a) 0.414
(b) 0.436
(c) 0.564
(d) 0.586