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Hello, I need a little help figuring out the answer to this homework problem. Can someone help me? Problem 10-30 Using Probability Distributions Suppose the
Hello,
I need a little help figuring out the answer to this homework problem. Can someone help me?
Problem 10-30 Using Probability Distributions Suppose the average return on Asset A is 6.6 percent and the standard deviation is 7.8 percent and the average return and standard deviation on Asset B are 3.7 percent and 3.2 percent, respectively. Further assume that the returns are nomally distributed. Use the NORMDIST function in Excel to answer the following questions. a. What is the probability that in any given year, the return on Asset A will be greater than 9 percent? Less than 0 percent? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places (e.g., 32.16).) Greater than 9 percent Less than 0 percent b. What is the probability that in any given year, the return on Asset B will be greater than 9 percent? Less than 0 percent? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places (e.g., 32.16).) Greater than 9 percent Less than 0 percent C-1 In 1979, the return on Asset A was -4.33 percent How likely is it that such a low return will recur at some point in the future? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).) Probability c-2 Asset B had a return of 10.40 percent in this same year. How likely is it that such a high return on Asset B ill recur at some point in the future? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).) ProbabilityStep by Step Solution
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