Question
A banks profit next year will be normally distributed with a mean of 1.2% of assets and a standard deviation of 2.2% of assets. The
A banks profit next year will be normally distributed with a mean of 1.2% of assets and a standard deviation of 2.2% of assets. The banks equity is 5% of assets. What is the probability that the bank will have a non-negative equity at the end of the year (ignore taxes)?
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Financial Management Principles and Application
Authors: Arthur J. Keown, J. William Petty, David F. Scott, Jr.
10th edition
536514119, 536514110, 978-0536514110
