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Normal probability distribution Assuming that the rates of return associated with a given asset investment are normally distributed; that the expected return, r , is
Normal probability distribution Assuming that the rates of return associated with a given asset investment are normally distributed; that the expected return, r, is 11.6%; and that the coefficient of variation, CV, is 0.84,answer the following questions:
a.Find the standard deviation of returns, r.
b.Calculate the range of expected return outcomes associated with the following probabilities of occurrence: (1) 68%, (2) 95%, (3) 99%.
c. Draw the probability distribution associated with your findings in parts a and b.
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