Question
The expected rate of return for the coming year on FTC common stock is normally distributed with a mean of 14% and a standard deviation
The expected rate of return for the coming year on FTC common stock is normally distributed with a mean of 14% and a standard deviation of 7%. Determine the probability of earning a negative rate of return (i.e. less than 0%) on FTC common stock. (Note: Table V is required to work this problem.)
| a. | 0.9772 | |
| b. | 0.0228 | |
| c. | 2.00 | |
| d. | 0.5000 |
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Empirical Finance For Finance And Banking
Authors: Robert Sollis
1st Edition
047051289X, 978-0470512890
