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Suppose the returns on an asset are normally distributed. The historical average annual return for the asset was 5 percent and the standard deviation was
Suppose the returns on an asset are normally distributed. The historical average annual return for the asset was 5 percent and the standard deviation was 18.4 percent.
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a. | What range of returns would you expect to see 95 percent of the time? (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 2 decimal places, e.g., 32.16.) |
b. | What range would you expect to see 99 percent of the time? (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 2 decimal places, e.g., 32.16.) |
a. | 95% level | % to | % | ||
b. | 99% level | % to | % |
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