Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The S&P 500 index mean yearly return is 9.42% and the standard deviation of the yearly return is 19.74%. On October 19, 1987, the S&P

The S&P 500 index mean yearly return is 9.42% and the standard deviation of the yearly return is 19.74%. On October 19, 1987, the S&P 500 index dropped more than 20%. How many standard deviations is -20% one day return away from the mean?

It locates at _______ standard deviations below the mean return (rounding your answer to the integer)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Finance For Nonfinancial Managers

Authors: Gene Siciliano

2nd Edition

0071824367, 978-0071824361

More Books

Students also viewed these Finance questions

Question

What is join? List and explain various types of joins.

Answered: 1 week ago