The average stock price for companies making up the S&P 500 is $30, and the standard deviation

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The average stock price for companies making up the S&P 500 is $30, and the standard deviation is $8.20 (BusinessWeek, Special Annual Issue, Spring 2003). Assume the stock prices are normally distributed.

a. What is the probability a company will have a stock price of at least $40?

b. What is the probability a company will have a stock price no higher than $20?

c. How high does a stock price have to be to put a company in the top 10%?


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Quantitative Methods For Business

ISBN: 148

11th Edition

Authors: David Anderson, Dennis Sweeney, Thomas Williams, Jeffrey Cam

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