Question
A certain stock market had a mean return of 20.16% in a recent year. Assume that the returns for stocks on the market were distributed
A certain stock market had a mean return of 20.16% in a recent year. Assume that the returns for stocks on the market were distributed normally, with a mean of 20.16% and a standard deviation of 20%.
a. If you select an individual stock at random from this population, what is the probability that it would have a percentage return less than 0% (that is, a loss)? The probability is
.1567
(Round to four decimal places as needed.)
b. If you select an individual stock at random from this population, what is the probability that it would have a percentage return between 0% and 10%?
The probability is
0.149
(Round to four decimal places as needed.)
c. If you select an individual stock at random from this population, what is the probability that it would have a percentage return greater than 10%?
The probability is
enter your response here.
(Round to four decimal places as needed.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started