2. 17. Using Return Distributions [LO 12.3] Suppose the returns on government bonds are normally distributed. Based

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2. 17.

Using Return Distributions [LO 12.3] Suppose the returns on government bonds are normally distributed. Based on the historical record, what is the approximate probability that your return on these bonds will be less than −2.1 per cent in a given year? What range of returns would you expect to see 95 per cent of the time? What range would you expect to see 99 per cent of the time?

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Fundamentals Of Corporate Finance

ISBN: 9781743768051

8th Edition

Authors: Stephen A. Ross, Rowan Trayler, Charles Koh, Gerhard Hambusch, Kristoffer Glover, Randolph W. Westerfield, Bradford D. Jordan

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