Question
Assume that your stock portfolio has a periodic forecast mean rate of return equal to 15% and a periodic forecast standard deviation equal to 25%.
Assume that your stock portfolio has a periodic forecast mean rate of return equal to 15% and a periodic forecast standard deviation equal to 25%. Assume that stock returns are normally distributed.
A. What is a probability that your portfolio return will be less than 15% during the next period?
B. What is a probability that your portfolio return will be greater than zero (0%) during the next period?
C. What is a probability that your portfolio return will be between -5% and +35% during the next period?
D. What is a probability that your portfolio return will be less than 40% during the next period?
E. What is a probability that your portfolio return will be either Less than -5% or Greater than 30% during the next period?
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