Using Return Distributions Suppose the returns on your company are normally distributed. The historical average share price
Question:
Using Return Distributions Suppose the returns on your company are normally distributed. The historical average share price return for your firm is 5.8 per cent with a standard deviation of 9.3 per cent. What is the approximate probability that your return will be less than
–3.5 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?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Fundamentals Of Corporate Finance
ISBN: 9780077178239
3rd Edition
Authors: David Hillier, Iain Clacher, Stephen A. Ross
Question Posted: