Consider the monthly returns of a stock. Assume that the returns are normally distributed with mean

Question:

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%.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Investment Valuation And Asset Pricing Models And Methods

ISBN: 9783031167836

1st Edition

Authors: James W. Kolari, Seppo Pynnönen

Question Posted: