Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Normal probably distribution Assuming that the rates of return associated with a given as investment are normaly b uted that the expected return, is 12.1%

image text in transcribed
image text in transcribed
Normal probably distribution Assuming that the rates of return associated with a given as investment are normaly b uted that the expected return, is 12.1% and that the content of variation, CV is 1/2 answer the following a. Find the standard deviation of retums, b. Calculate the range of expected return outcomes associated with the following probabilities of occurrence: () 68% 12,95%. (3) a. The standard deviation of returns (Round to three decimal places.) b. (1) The lowest possible expected retum associated wine 68% probability of occurrence (Round toodedmal places) The highest possible expected return associated with the probably of occurrence is 1% (Round to complaces) 2) The lowest possible expected return associated with the probably of occurrence is % (Round to two decimar places) The highest possible expected return associated with the 95% probability of occurrence Round to two decimal places.) (3) The lowest possible expected return associated with the 99% probability of occurrence is (Round to two decimal places) The highest possible expected return associated with the 99% probability of occurrence is % (Round to two decimal places.) Normal probability distribution Assuming that the rates of return associated with a given asset invest questions: buted that the expected return is 12.15 and that the coeficient of variation CV, is 1.72 answer the following 2. Find the standard deviation of returns, b. Calculate the range of expected return outcomes associated with the flowing probabilities of occurrence: (1) 68%, (2) 96% 63 a. The standard deviation of returns . Hound to three decimal places.) b. (1) The lowest possible expected return associated with the 68% probability of occurrence is Pound to two decimal places.) The highest possible expected return associated with the 68% probability of occurrence is found to decimale ) (2) The lowest possible expected return associated with the 90% probaby of occurrences Pound to be decimal places The highest possible expected return associated with the 95% probably of occurrences " (Round to two decimal places) (3) The lowest possible expected return associated with these probataty of occurrence is (Round to two decimal places The highest possible expected retum associated with the 99% probabiety of occurrence is % (Round to two decir

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_2

Step: 3

blur-text-image_3

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

Financial Markets And Corporate Strategy

Authors: David Hillier , Mark Grinblatt , Sheridan Titman

2nd Edition

0077129423,0077141350

More Books

Students also viewed these Finance questions

Question

pH of 1M NH3 solution should be around 7 6 11 14 none of the above

Answered: 1 week ago

Question

Solve for x: 2(3x 1)2(x + 5) = 12

Answered: 1 week ago