5. The annual return on a stock is normally distributed with a mean of 20% and standard deviation of 30%. What is the probability of its actual return being between -30% and 80%?
5. The annual return on a stock is normally distributed with a mean of 20% and standard deviation of 30%. What is the probability of its actual return being between -30% and 80%?
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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![5. The annual return on a stock is normally distributed with a mean of 20% and standard deviation of
30%. What is the probability of its actual return being between -30% and 80%?
6. Consider a portfolio of three funds, X, Y,Z, with weights wx, wy, and wz. What is the variance of
the portfolio? [Hint: Use the correlation coefficients between these three funds, pxY, Pxz, and pyz,
to represent it.]
3](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F46cf219d-e934-4a21-8fe1-526691fb9ba3%2Fd12ab837-90a8-4cd2-bdbb-94bd15ba8a89%2Fh2xegla_processed.jpeg&w=3840&q=75)
Transcribed Image Text:5. The annual return on a stock is normally distributed with a mean of 20% and standard deviation of
30%. What is the probability of its actual return being between -30% and 80%?
6. Consider a portfolio of three funds, X, Y,Z, with weights wx, wy, and wz. What is the variance of
the portfolio? [Hint: Use the correlation coefficients between these three funds, pxY, Pxz, and pyz,
to represent it.]
3
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