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Suppose the average return on FTSE TMX Canada long-term bonds is 6.70% and the standard deviation is 8.70% and the average return and standard deviation

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Suppose the average return on FTSE TMX Canada long-term bonds is 6.70% and the standard deviation is 8.70% and the average return and standard deviation on T-bills are 3.90% and 3.40%, respectively. Further assume that the returns are normally distributed. Use the NORMDIST function in Excel to answer the following questions. (Do not round intermediate calculations. Round the final answers to 2 decimal places.) a. What is the probability that in any given year, the return on long-term corporate bonds will be greater than 10%? Less than 0%? Greater than 10% Less than 0% b. What is the probability that in any given year, the return on T- bills will be greater than 10%? Less than 0%? Greater than 10% Less than 0% c-1 In 1981, the return on FTSE TMX Canada long-term bonds was -4.26%. How likely is it that such a low return will recur at some point in the future? Probability % c-2 T-bills had a return of 970% in this same year. How likely is it that such a high return on T-bills will recur at some point in the future? Probability %

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