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13 9 Normal probability distribution Assuming that the rates ot return associated wth a given asset investment are normally distributed, that the expected return, r,

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13 9 Normal probability distribution Assuming that the rates ot return associated wth a given asset investment are normally distributed, that the expected return, r, is and that the coefficient of variation, CV is 1.96 answer the following questions a. Find the standard deviation of returns, r b. Calculate the range of expected return outcomes associated with the following probabilities of occurrence: (1) 68%, (2) 95%, (3) 99% a. The standard deviation of returns, is % (Round to three decimal places.) b (1) The lowest possible expected return associated with the 68% probability o m e % ( oun The highest possible expected return associated with the 68% probability of occurrence is (2) The lowest possible expected return associated with the 95% probability of to two decimal places.) Round tswo decimal places.) und Mode mal places. % occufrence is Round to two decimal places) ce i,0% nce is11%..( (Round to two decimal places ) The highest possible expected return associated with the 95% probability of occur ren und to two decimal places) (3) The lowest possible expected return associated with the 99% probability or occure of urrence is % Round to two decimal places. The highest possible expected return associated with the 99% probabili

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