Question
A stock has an annual return of 11 percent and a standard deviation of 54 percent. What is the smallest expected loss over the next
A stock has an annual return of 11 percent and a standard deviation of 54 percent. What is the smallest expected loss over the next year with a probability of 1 percent?
How is this calculated in Excel? The explanation I am given is Prob(R<_0.11-2.326(0.5))=1%, Prob(R<_-1.1460)=1%.
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Analysis for Financial Management
Authors: Robert c. Higgins
8th edition
73041807, 73041803, 978-0073041803
