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5) Suppose the returns on long term government bonds are normally distributed. Based on the historical record, what is the approximate probability that you return
5) Suppose the returns on long term government bonds are normally distributed. Based on the historical record, what is the approximate probability that you return on these bonds will be less than -3.9% in a given year? What range of return would you expect to see 95% of the time? What range would you expect to see 99% of the time?
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