Question
The average return for large-cap domestic stock funds over the three years 20092011 was 14.5%. 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 14.5%. Assume the three-year returns were normally distributed across funds with a standard deviation of 4.8%.
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)?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
College Algebra Graphs and Models
Authors: Marvin L. Bittinger, Judith A. Beecher, David J. Ellenbogen, Judith A. Penna
5th edition
321845404, 978-0321791009, 321791002, 978-0321783950, 321783956, 978-0321845405
