The annual rate of return for a share of a specific stock is a normal random variable

Question:

The annual rate of return for a share of a specific stock is a normal random variable with mean 10% and standard deviation 12%. Ms. Couture buys 100 shares of the stock at a price of $60 per share. What is the probability that after a year her net profit from that investment is at least $750? Ignore transaction costs and assume that there is no annual dividend.

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

Step by Step Answer:

Question Posted: