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Suppose the returns on an asset are normally distributed. Suppose the historical average annual return for the asset was 5 . 7 percent and the
Suppose the returns on an asset are normally distributed. Suppose the historical average annual return for the asset was percent and the standard deviation was percent.
a What is the probability that your return on this asset will be less than percent in a given year? Use the NORMDIST function in Excel to answer this question.
Note: Do not round intermediate calculations and enter your answer as a percent rounded to decimal places, eg
b What range of returns would you expect to see percent of the time?
Note: A negative answer should be indicated by a minus sign. Enter your answers for the range from lowest to highest. Do not round intermediate calculations and enter your answers as a percent rounded to decimal places, eg
c What range would you expect to see percent of the time?
Note: A negative answer should be indicated by a minus sign. Enter your answers for the range from lowest to highest. Do not round intermediate calculations and enter your answers as a percent rounded to decimal places, eg
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