TABLE A.5 Cumulative normal distribution d N(d) d N(d) d N(d) d N(d) d N(d) d N(d) -3.00 .0013 -1.58 .0571 -.76 .2236 .06 .5239 .86 .8051 1.66 .9515 -2.95 .0016 -1.56 .0594 -.74 .2297 .08 .5319 .88 .8106 1.68 .9535 -2.90 .0019 -1.54 .0618 -.72 .2358 .10 .5398 .90 .8159 1.70 .9554 -2.85 .0022 -1.52 .0643 -.70 .2420 .12 .5478 .92 .8212 1.72 .9573 -2.80 .0026 -1.50 .0668 -68 .2483 .14 .5557 .94 .8264 1.74 .9591 -2.75 .0030 -1.48 .0694 -.66 .2546 .16 .5636 .96 .8315 1.76 .9608 -2.70 .0035 -1.46 .0721 -.64 .2611 .18 .5714 .98 .8365 1.78 .9625 -2.65 .0040 -1.44 .0749 -.62 .2676 .20 .5793 1.00 .8413 1.80 .9641 -2.60 .0047 -1.42 .0778 -60 .2743 .22 .5871 1.02 .8461 1.82 .9656 -2.55 .0054 -1.40 .0808 -.58 .2810 .24 .5948 1.04 .8508 1.84 .9671 -2.50 .0062 -1.38 .0838 -.56 .2877 .26 .6026 1.06 .8554 1.86 .9686 -2.45 .0071 -1.36 .0869 -.54 .2946 .28 .6103 1.08 .8599 1.88 .9699 -2.40 .0082 -1.34 .0901 -52 .3015 .30 .6179 1.10 .8643 1.90 .9713 -2.35 .0094 -1.32 .0934 -.50 .3085 .32 .6255 1.12 .8686 1.92 .9726 -2.30 .0107 -1.30 .0968 -.48 .3156 34 .6331 1.14 .8729 1.94 .9738 -2.25 .0122 -1.28 .1003 -.46 .3228 .36 .6406 1.16 .8770 1.96 .9750 -2.20 .0139 -1.26 .1038 -.44 .3300 .38 .6480 1.18 .8810 1.98 .9761 -2.15 .0158 -1.24 .1075 -42 3372 .40 .6554 1.20 .8849 2.00 .9772 -2.10 .0179 -1.22 .1112 -.40 .3446 42 .6628 1.22 .8888 2.05 .9798 -2.05 .0202 -1.20 .1151 -.38 .3520 .44 .6700 1.24 .8925 2.10 .9821 -2.00 .0228 -1.18 .1190 -.36 .3594 .46 .6772 1.26 .8962 2.15 .9842 -1.98 .0239 -1.16 .1230 -34 .3669 .48 .6844 1.28 .8997 2.20 .9861 -1.96 .0250 -1.14 .1271 -.32 .3745 .50 .6915 1.30 .9032 2.25 .9878 -1.94 .0262 -1.12 .1314 -.30 .3821 .52 .6985 1.32 .9066 2.30 .9893 -1.92 .0274 -1.10 .1357 -.28 .3897 .54 .7054 1.34 .9099 2.35 .9906 -1.90 .0287 -1.08 .1401 -.26 .3974 .56 .7123 1.36 9131 2.40 .9918 -1.88 .0301 -1.06 .1446 -.24 .4052 .58 .7190 1.38 .9162 2.45 .9929 -1.86 .0314 -1.04 .1492 -.22 .4129 .60 .7257 1.40 .9192 2.50 .9938 -1.84 .0329 -1.02 .1539 -.20 .4207 .62 .7324 1.42 .9222 2.55 .9946 -1.82 .0344 -1.00 .1587 -.18 .4286 .64 .7389 1.44 .9251 2.60 .9953 -1.80 .0359 -.98 .1635 -.16 .4364 .66 .7454 1.46 .9279 2.65 .9960 Suppose the returns on long-term corporate bonds are normally distributed. Refer to Figure 12.10 and 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.) Answer is not complete. a. Probablity 15.87 % b. 95% level -10.50 % to 23.10% c. 99% level % to % FIGURE 12.10 Historical Returns, Standard Deviations, and Frequency Distributions: 1926-2019 Series Average Return Standard Deviation Frequency Distribution Large-company stocks 12.1% 19.8% Small-company stocks 16.3 31.5 Long-term corporate bonds 6.4 8.5 Long-term government bonds Intermediate-term government bonds 6.0 9.8 5.2 5.6 U.S. Treasury bills 3.4 3.1 Inflation *The 1933 small-company stocks total return was 142.9 percent. SOURCE: 2020 SBBI Yearbook. Duff & Phelps. 2.9 4.0 ... * lil.... I... II..