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You invest in a stock with the following probability distribution of returns: A probability of .15 that the return will be 16%; a probability of
You invest in a stock with the following probability distribution of returns: A probability of .15 that the return will be 16%; a probability of .35 that the return will be 24%; a probability of .3 that the return will be -40%; and a probability of .2 that the return will be 45%. Based on this data and assuming the stock returns are normally distributed, you can say with a probability of 95% that the actual return will be in the range of? |
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