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Between 3% and 18% and less than 3% A stock has an average return of 8.00% and a standard deviation of 5.00%. Assuming that the
Between 3% and 18% and less than 3%
A stock has an average return of 8.00% and a standard deviation of 5.00%. Assuming that the returns are normally distributed, calculate the probability that the actual return will be: a) between 3.00% and 18.00%; b) less than 3.00%. Assume that i) 68% of the values fall within 1 standard deviation from the mean ii) 95% of the values fall within 2 standard deviation from the mean iii) 99% of the values fall within 3 standard deviation from the mean Answers (round to two decimal places): a) % b) % * Make sure to enter percentages not decimals (e.g., 0.9000 -> 90.00%)Step by Step Solution
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