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Suppose the returns on intermediate-term government bonds are normally distributed (with an arithmetic mean of 5.4%, and standard deviation of 5.6%). Based on the historical
Suppose the returns on intermediate-term government bonds are normally distributed (with an arithmetic mean of 5.4%, and standard deviation of 5.6%). Based on the historical record, what is the approximate probability that your return on these bonds will be less than -0.2 percent in a given year? What range of returns would you expect to see 95% of the time? What range would you expect to see 99% of the time?
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