Consider the monthly returns of a stock. Assume that the returns are normally distributed with mean
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Consider the monthly returns of a stock. Assume that the returns are normally distributed with mean μ = 1% and standard deviation σ = 9% (per month).
How often would you expect to see a monthly return that exceeds 10%? How about 20%.
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Probability of Exceeding Return Thresholds We can use the standard normal distribution and the zscor...View the full answer
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