Assuming that the rates of return associated with a given asset investment are normally distributed that the expected return, r, is 18 9 and that the coefficient of variation, CV, is 0 75 answer the following questions a Find the standard deviation of returns, r b Calculate the range of expected re...

a Coefficient of variation CV r r Solving for standard deviatio ...

Assuming that the rates of return associated with a given asset investment are normally distributed; that the

Question:

Assuming that the rates of return associated with a given asset investment are normally distributed; that the expected return, rˉ, is 18.9%; and that the coefficient of variation, CV, is 0.75; answer the following questions:

a. Find the standard deviation of returns, σr.

b. Calculate the range of expected return outcomes associated with the following probabilities of occurrence:

(1) 68%,

(2) 95%,

(3) 99%.

c. Draw the probability distribution associated with your findings in parts a and b.

Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most... Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these...