Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Monthly returns since 1950 of the S&P 500 are approximately normally distributed with an approximate average 23 of 0.66% and a monthly standard deviation of

image text in transcribed
image text in transcribed
Monthly returns since 1950 of the S&P 500 are approximately normally distributed with an approximate average 23 of 0.66% and a monthly standard deviation of 3.5%. Answer the following questions given this information. Use the Empirical Rule taught in lecture. a) (2 pts) What is the upper and lower bounds of the range of monthly returns for the middle 68% of returns? Show your work. Use 2 decimals. b) (2 pts) What's the cutoff for the upper 0.15% of monthly returns? Show your work. Use 2 decimals. c) (2 pts) What's the cutoff for the lower 2.5% of monthly returns? Show your work. Use 2 decimals. d) (2 pts) What percent of monthly returns fall between -2.84% and 7.66%? Show your work. Use 2 decimals

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

Essential Discrete Mathematics For Computer Science

Authors: Harry Lewis, Rachel Zax

1st Edition

0691190615, 9780691190617

More Books

Students also viewed these Mathematics questions

Question

1. Why do we trust one type of information more than another?

Answered: 1 week ago