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Suppose the average return on Asset A is 6 . 5 percent and the standard deviation is 7 . 7 percent, and the average return
Suppose the average return on Asset A is percent and the standard deviation is percent, and the average return and standard deviation on Asset B are percent and percent, respectively. Further assume that the returns are normally distributed. Use the NORMDIST function in Excel to answer the following questions.
a
What is the probability that in any given year, the return on Asset A will be greater than percent? Less than percent? Do not round intermediate calculations and enter your answers as a percent rounded to decimal places, eg
b What is the probability that in any given year, the return on Asset B will be greater than percent? Less than percent? Do not round intermediate calculations and enter your answers as a percent rounded to decimal places, eg
c In a particular year, the return on Asset A was percent. How likely is it that such a low return will recur at some point in the future? Do not round intermediate calculations and enter your answer as a percent rounded to decimal places, eg
c Asset B had a return of percent in this same year. How likely is it that such a high return will recur at some point in the future? Do not round intermediate calculations and enter your answer as a percent rounded to decimal places, eg
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