The return for a stock has an average of $40 with a standard deviation of $2. Assume
Question:
The return for a stock has an average of $40 with a standard deviation of $2. Assume that a Normal model can be applied.
a) Draw the model for the return of the stock. Clearly label it, showing what the 68–95–99.7 Rule predicts about the return.
b) In what interval would you expect the central 68% of returns to be found?
c) About what percent of returns should be more than $42?
d) About what percent of returns should be between $42 and $44?
e) Describe the minimum of return at the bottom 2.5%.
Step by Step Answer:
Related Book For
Business Statistics
ISBN: 9781292269313
4th Global Edition
Authors: Norean Sharpe, Richard De Veaux, Paul Velleman
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