Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The average return for large-cap domestic stock funds over the three years 20092011 was 14.6%. Assume the three-year returns were normally distributed across funds with

image text in transcribed
The average return for large-cap domestic stock funds over the three years 20092011 was 14.6%. Assume the three-year returns were normally distributed across funds with a standard deviation of 4.4%. Open spreadsheet a. what is the probability an individual large-cap domestic stock fund had a three-year return of at least 20% (to 4 decimals)? 0.1038 9 b. what is the probability an individual large-cap domestic stock fund had a three-year return of 10% or less {to 4 decimals}? 0.1423 8 c. How big does the return have to be to put a domestic stock fund in the top 10% for the threervear period {to 2 decimals)? 20.10 6 %

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Mathematical Applications for the Management Life and Social Sciences

Authors: Ronald J. Harshbarger, James J. Reynolds

11th edition

9781337032247, 9781305465183, 1305108043, 1337032247, 1305465180, 978-1305108042

More Books

Students also viewed these Mathematics questions

Question

How well do you know your readers?

Answered: 1 week ago