Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Assume the returns from holding an asset are normally distributed. Also assume the average annual return for holding the asset a period of time was
Assume the returns from holding an asset are normally distributed. Also assume the average annual return for holding the asset a period of time was 15.5 percent and the standard deviation of this asset for the period was 33.4 percent. Use the NORMDIST function in Excel to answer the following questions. What is the approximate probability that your money will double in value in a single year? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 3 decimal places, e.g., 32.161. What is the approximate probability that your money will triple in value in a single year? Note: Do not round intermediate calculations and enter your answer as a percent
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