Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

If the return on an asset follows normal distribution, with a mean of 12%, and a standard deviation of 20%, what is the probability of

image text in transcribed
If the return on an asset follows normal distribution, with a mean of 12%, and a standard deviation of 20%, what is the probability of return being greater than 15% over the next year? Please note: NORMSDIST(0.15)-0.5596 NORMSDIST(0.03)=0.5120 NORMSDIST(0.12)=0.5478 NORMSDIST(0.20)=0.5793 0.4801 0.4880 0.4404 0.5478 0.5596 O 0.5793 0.5120

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Entrepreneurial Finance

Authors: J. Chris Leach, Ronald W. Melicher

7th Edition

0357442040, 978-0357442043

More Books

Students also viewed these Finance questions

Question

What do you know of my (the interviewers) research program?

Answered: 1 week ago