Question
Assume the returns from holding small-company stocks are normally distributed. Also assume the average annual return for holding the small-company stocks for a period of
Assume the returns from holding small-company stocks are normally distributed. Also assume the average annual return for holding the small-company stocks for a period of time was 17.1 percent and the standard deviation of those stocks for the period was 35 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?
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The Finance Book
Authors: Stuart Warner, Si Hussain
1st Edition
1292123648, 978-1292123646
