Question
Suppose the returns on long-term government bonds are normally distributed. Assume long-term government bonds have a mean return of 6.3 percent and a standard deviation
Suppose the returns on long-term government bonds are normally distributed. Assume long-term government bonds have a mean return of 6.3 percent and a standard deviation of 9.0 percent. Requirement 1: What is the approximate probability that your return on these bonds will be less than 11.7 percent in a given year? (Do not include the percent sign (%). Round your answer to 2 decimal places (e.g., 32.16).)
Probability ___ %
Requirement 2: What range of returns would you expect to see 68 percent of the time? (Do not include the percent signs (%). Negative amount should be indicated by a minus sign. Input your answers from lowest to highest to receive credit for your answers. Round your answers to 2 decimal places (e.g., 32.16).)
Expected range of returns __ % to __ %
Requirement 3: What range would you expect to see 95 percent of the time? (Do not include the percent signs (%). Negative amount should be indicated by a minus sign. Input your answers from lowest to highest to receive credit for your answers. Round your answers to 2 decimal places (e.g., 32.16).)
Expected range of returns __% to __%
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