Question
Bavarian Sausages shares have an average historical return of 16.3% and a standard deviation of 5.3%. What is the probability that the return on Bavarian
Bavarian Sausages shares have an average historical return of 16.3% and a standard deviation of 5.3%. What is the probability that the return on Bavarian Sausage will be higher than 26.9%?
| a. | 5% |
| b. | 2.5% |
| c. | 16% |
| d. | 95% |
ANS: B
26.9 = 16.3 + 2(5.3)
Probability = 1 0.5 0.475 = 0.025
why the answer wrote like that?
please explain clearly thank you!
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Corporate Finance Investment And Advisory Applications
Authors: Jesse McDougall, Patrick Boyle
1st Edition
1530116597, 9781530116591
