Question
Problem 2, Please show work! A. The returns on a bond are normally distributed with a mean of 6% and a standard deviation of 13%.
Problem 2, Please show work!
A. The returns on a bond are normally distributed with a mean of 6% and a standard deviation of 13%. Calculate the range of returns into which 99% of the returns are projected to fall.
B. From 2017 to 2020 the returns on a stock were: 12.2%, 3.8% 1.7%, and 15.2% Calculate the average arithmetic return.
C. From 2017 to 2020 the returns on a stock were: 12.2%, 3.8% 1.7%, and 15.2% Calculate the average geometric return.
D. Over a 20-year period, the geometric return for a stock = 9.1%, and the arithmetic return = 9.3%. Using Blumes formula, calculate the forecast return for a 5-year period.
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