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The S&P 500 Index is a widely appreciated measure of the US stock market's value. Yahoo Finance provides historical data on it. In 2020
The S&P 500 Index is a widely appreciated measure of the US stock market's value. Yahoo Finance provides historical data on it. In 2020 through late August, its weekly return had an average of 0.34% and a standard deviation of 3.75%, indicating a high risk m/11. You model the risk in next week's S&P 500 value as a normal distribution with the above mean and standard deviation, assuming a near future like the recent past. a. What is the modeled probability that next week's return will be better than 2%? b. What is the modeled probability that next week's return will be worse than -5%?
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