Question
The returns of a stock follow the normal distribution, with average return of 13.2% and standard deviation of 23.7%. What is the probability that
The returns of a stock follow the normal distribution, with average return of 13.2% and standard deviation of 23.7%. What is the probability that in any given year, the stock's return will be between -34.2% and +36.9%? Assume the following: the one standard deviation probability range is 0.68; the two standard deviation probability range is 0.95; and the three standard deviation probability range is 0.99.
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The probability that the stocks return will be between 342 and 369 is 09500000000000001 We can use t...Get Instant Access to Expert-Tailored Solutions
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Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
13th International Edition
1265533199, 978-1265533199
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