P12-23 Using Probability Distributions [LO3] Suppose the returns on large-company stocks are normally distributed. The average annual return for large- company stocks from 1926 to 2007 was 13.4 percent and the standard deviation of those stocks for that perlod was 23.5 percent. Based on the historical record, use the cumulative normal probability table rounded to the nearest table value) in the appendix of the text to determine the probability that in any given year you ill lose money by investing in common stock. TABLE A.11 Cumulative Areas under the Standard Normal Curve 05 09 0003 03 ,0003 .0003 .0003 0003 0002 0004 0012 .0018 0017 0023 0011 .0015 0021 0032 .0031 .0030 .0029 .0028 .0027 .0026 0013 .0014 0014 0019 0018 0016 0016 0047 060 0040 .0039 0055 0054 0052 .0051 0037 0060 0059 .0057 0075 0099 0107 -2.2 0139 0179 0104 0102 0136 .01 32 .0129 .0125 .0122 .01 19 .01 16 .01 13 .01 10 0170 0166 0162 0158 0150 0222 0188 0183 028 .0274 .0268 .0262 0256 .0250 .0244 .0239 .0233 .0351 .0344 .0336 .0329 .0322 .0314 .0307 .0301 .0294 0375 0455 0559 0655 0630 0764 14 066s 0537 0427 0336 02620202 0154 0116 007 0064 0749 0838 1112 1038 1210 1170 1446 1685 1841 1736 1762 2033 2327 1611 -0.8 119 181415391292 1075 088 0721 0582 0465 0367 1977 2090 2061 2389 -0.7 2420 2743 2358 2676 2643 2266 2236 2578 2546 .3050 .3015 .2981 .2946 .2912 .2877 .2843 .2810 .2776 3372 3745 3336 3707 3228 3594 3974 3121 3520 -0.2 4207 -0.1 -0.0 3897 3859 4562 4522 4834443 4404 3644325 4286 4247 5359 .5832 5871 .5910 .5948 .5987 .6026 .6064 .6103 .6141 4920 4840 4801 4761 5120 5160 51995239 5279 5517 5557 5596 5636 .5675 5714 .5398 .5793 0.2 6331 6368 6406 6517 6628 .6664 6700 6736 67726808 6844 6879 7019 7157 6950 6985 7291 7123 7324 7357 73897422 7454 7486 75177549 7611 7642 7673 7704 77347764 7794 7823 7852 7881 7910 8051 8106 8133 8389 8238 8485 8508 8531 8554 8577 8599 8621 8708 8289 8413 8729 8749 8749 8770 8869 1.3 1.4 9032 .9192 9015 9162 9177 9207 9222 9236 9251 9265 9279 .92929306 9319 9082 9147