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Assume that the equity risk premium is normally distributed with a population mean of 6 percent and a population standard deviation of 18 percent.
Assume that the equity risk premium is normally distributed with a population mean of 6 percent and a population standard deviation of 18 percent. Over the last four years, equity returns (relative to the risk-free rate) have averaged -2.0 percent. You have a large client who is very upset and claims that results this poor should never occur. What is the probability of a-2.0 percent or lower average retum over a four-year period? Decide on your own whether to use the z table or the z table. Use excel for full precision. Then enter your answer as a probability rounded to two decimal places, so in the format 0.XX Question 12 1 points Save Answer Assume that the equity risk premium is normally distributed with a population mean of 6 percent and a population standard deviation of 18 percent. Over the last four years, equity returns (relative to the risk-free rate) have averaged -2.0 percent. You have a large client who is very upset and claims that results this poor should never occur. What is the probability of a -2.0 percent or lower average retum over a four-year period? Decide on your own whether to use the z table or the z table. Use excel for full precision. Then enter your answer as a probability rounded to two decimal places, so in the format 0.XX Moving to anoth
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