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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
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 %
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