Suppose the returns on long-term corporate bonds are normally distributed. Figure 12.10. Refer to Table A.5. a. What is the approximate probability that your return on these bonds will be less than - 2.1 percent in a given year? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What range of returns would you expect to see 95 percent of the time? (Enter your answers for the range from lowest to highest. A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) c. What range would you expect to see 99 percent of the time? (Enter your answers for the range from lowest to highest. A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) % a. Probablity b. 95% level % to % % c. 99% level % to Heturns, Standard Deviations, and Frequency Distributions: 1926-2016 Series Average Return Standard Deviation Frequency Distribution Large-company stocks 12.05 1994 . .... Small-company stocks 16.6 31.9 ..... Long-term corporate bonds 6.3 8.4 Long-term government bonds 6.0 99 will 53 Intermediate-term government bonds 5.6 I. U.S. Treasury bills 3.1 Inflation 3.0 .... S. Maring 2017 d Nd) d Nd) N(d) d d d Nid) -3.00 .0013 -1.58 .0671 -76 2236 N(d) .8061 N[d) 5239 5319 .08 86 1.66 .9515 -2.96 .0016 - 74 2297 .06 .88 .8106 1.68 .0594 .0618 9535 .0019 - 72 2358 .10 5398 90 .8159 1.70 .9554 .0643 -70 .12 .92 -2.85 -2.80 .8212 1.72 .0022 .0026 .0030 2420 2483 .9573 .5478 .5557 .0668 -68 .14 94 .8264 1.74 .0694 - 66 .9591 .9008 2546 .16 -2.75 -2.70 .5636 .90 1.76 .8315 .8365 .0035 .0040 -64 .18 5714 1.78 .9625 -1.56 -1.54 -1.52 -1.50 -1.48 -1.46 -1.44 -1.42 -1.40 -1.38 -1.36 -1.34 -1.32 .0721 .0749 0778 2611 2076 -2.65 -2.60 .98 1.00 -62 .20 .5798 .8413 1.80 9641 -.60 .0047 .0054 2743 .5871 1.02 8461 .9656 -2.55 0506 1.82 1.84 -58 .22 24 .26 2810 .5948 .8508 .9671 -2.50 .0062 - 56 2877 .6026 .0838 .0800 1.04 1.00 1.08 .8554 .8599 1.80 1.88 -.54 -2.45 -2.40 2946 .28 .6100 .0071 .0082 .0094 .9686 .9690 .9713 -.52 30 .6179 1.10 .0901 .0934 -2.35 8643 8686 32 .6255 1.12 1.90 1.92 1.94 .9726 0107 34 .6331 .9738 -2.30 -2.25 -2.20 -.48 -.46 1.14 1.16 .6400 .8729 .8770 .8810 .9750 1.96 1.98 -.44 1.18 .9761 .6480 .6554 -2.15 .40 1.20 - 42 - 40 .9772 -2.10 -2.05 .0122 .0139 .0158 0170 .0202 .0228 .0239 .0250 1.22 -1.30 -1.28 -1.26 -1.24 -1.22 -1.20 -1.18 -1.16 -1.14 -1.12 2.00 2.05 9798 .6626 6700 .8849 .8888 .8925 .8962 1.24 2.10 -2.00 - 38 - 36 -34 .6772 1.26 2.15 .9821 .9842 .9861 -1.96 .0968 -1003 .1038 . 1075 .1112 .1151 1190 1230 .1271 .1314 .1357 .1401 .1446 .1492 1530 1587 1.28 8907 .6844 0915 3015 3085 3156 3228 3300 3372 3440 3520 3594 3000 3745 3821 3897 3974 4052 4129 4207 4286 4364 4443 4522 .50 1.30 -1.90 -1.94 9032 2.20 2.25 2.30 9978 0262 1.32 .9066 1.34 .9900 -1.90 -1.90 -1.88 .0274 .0287 0301 - 32 - 30 - 28 - 20 - 24 - 22 2.35 2.40 1.30 .6985 .7054 .7123 .7100 .7257 .7324 .7380 -1.10 -1.08 -1.00 -1.04 -1.02 -1.00 1.38 9009 .9131 9162 9192 9222 2.45 .0314 .60 .9918 .9920 .9938 .9946 1.40 2.50 -1.80 -1.84 .0329 1.42 2.55 - 20 -18 -1.82 .0344 .64 1.44 2.60 .9953 9251 9279 -1.80 .0359 -98 .1635 .7454 2.65 .9900 -1.78 .7518 9300 .0375 .0392 2.70 1.46 1.48 1.50 1685 .1736 9906 -10 -14 -12 -10 -.08 -04 .7580 2.75 .9970 .0409 1.52 .9357 2.80 .9974 .0427 -.90 .70 .72 .74 .76 .1788 .1841 .1894 4002 4681 4761 -1.76 -1.74 -1.72 -1.70 -1.68 -1.00 -1.64 7642 7704 .7764 1.54 .9382 2.85 .9978 -.88 1.50 9-400 2.90 .9981 .0440 .0465 .0485 -.80 -.00 - 04 -.02 1.58 9429 2.95 .1949 .2005 9984 .4840 4920 -.84 .78 .80 .Be 1.60 9452 3.00 9987 .7823 .7881 .7930 .7996 2061 .00 5000 3.05 9980 0505 .0526 .0548 1.62 1.64 9474 .9495 2119 .00 5080 -.80 -.78 -1.00 2177 .04 5100