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Distribution of Stock Returns The average return for large-cap domestic stock funds over the three years 2009-2011 was 14 7% Assume the three-year returns were
Distribution of Stock Returns The average return for large-cap domestic stock funds over the three years 2009-2011 was 14 7% Assume the three-year returns were normally distributed across funds with a standard deviation of 45% Average return % (decimal form) Return standard deviation % (decimal form) a What is the probability an individual large-cap domestic stock fund had a three-year return of at least 20% to 4 decimal ? b What is the probability an individual large-cap domestic stock fund had a three-year return of 10% or less to 4 decimals)? C. How big does the return have to be to put a domestic stock fund in the top 10% for the three-year period (to 2 decimals)
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