Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

7 ) The yearly rate of return on stock indexes is approximately normal. Between 1 9 5 0 and 2 0 0 0 U .

7) The yearly rate of return on stock indexes is approximately normal. Between 1950 and 2000 U.S.
common stocks had a mean yearly return of about 13% with a standard deviation of about 17%.
a. In what range to the middle 95% of all yearly returns lie?
b. In what percent of years does the index gain 30% or less?
c. In what percent of years does the index gain more than 64%?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Mergers And Acquisitions Integration Handbook

Authors: Scott C. Whitaker

1st Edition

111800437X, 978-1118004371

More Books

Students also viewed these Finance questions