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Assume that the returns from an asset are normally distributed. The average annual return for this asset over a specific period was 17.5 percent and
Assume that the returns from an asset are normally distributed. The average annual return for this asset over a specific period was 17.5 percent and the standard deviation of those stocks in this period was 43.89 percent.
What is the approximate probability that your money will double in value in a single year?
Double in value ______%
What about triple in value?
Triple in value _______%
(SD of 1.88 where 96.99% is not correct. SD of 4.158 where 99.99% is not corret.)
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