Question
The average return for large-cap domestic stock funds over the three years 2009-2011 was 14.5% . Assume the three-year returns were normally distributed across funds
The average return for large-cap domestic stock funds over the three years 2009-2011 was 14.5% . Assume the three-year returns were normally distributed across funds with a standard deviation of 4.6%
a. What is the probability an individual large-cap domestic stock fund had a three-year return of at least 20%(to 4 decimals)?
b. What is the probability an individual large-cap domestic stock fund had a three-year return of 10% or less (to 4 decimals)?
C. How big does the return have to be to put a domestic stock fund in the top 10% for the three-year period (to 2 decimals)?
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