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1. What is the probability that, in any given future year, the VIOO return will be 30% or better? Round your answer to three decimal
1. What is the probability that, in any given future year, the VIOO return will be 30% or better? Round your answer to three decimal places.
2. What is the probability that, in any given future year, the VIOO return will be -10% or worse? Round your answer to three decimal places.
Consider this normal distribution graph and the information below for the next two questions: 34.1% 34.1% Probability .40 .35 .30 .25 .20 .15 .10 .05 .00 A 13.6% 13.6% 2.1% 2.1% 0.2% 0.2% -4 -3 -2. -1 0 1 2 3 4 68.2% Units of the x axis measure standard deviations away from the average. The %s, for our purposes, represent probabilities 95.4% 99.6% You have analyzed 30 years of historical, annual returns of Vanguard's VIOO ETE. VIOO aims to follow the performance of the S&P 600 Small-Cap stock index. (The S&P 500 is a large-cap index). You found the average return = 10% and the standard deviation of returns = 20%. You plan to model future VIOO returns (for better or worse) as normally distributed, based on your historical analysisStep by Step Solution
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