Assume that the returns from an asset are normally distributed. The average annualreturn for this asset over a specific period was 17.1 percent and the standard deviation ofthose returns in this period was 41.7 percent.a. What is the approximate probability that your money will double in value in a singleyear? (Do not round intermediate calculations and enter your answer as a percentrounded to 2 decimal places, e.g., 32.16.)b. What about triple in value? (Do not round intermediate calculations and enter youranswer as a percent rounded to 6 decimal places, e.g., 161616.)Probability of doublingb. Probability of triping2.33 %%

The returns from an asset are normally distributed. The mean of distribution is percent. The…

Answered: Assume that the returns from an asset…

A First Course in Probability (10th Edition)

10th Edition

ISBN:9780134753119

Author:Sheldon Ross

Publisher:Sheldon Ross

Chapter1: Combinatorial Analysis

Section: Chapter Questions

Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...

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Terri Vogel, an amateur motorcycle racer, averages 129.14 seconds per 2.5 mile lap (in a 7 lap race) with a standard deviation of 2.28 seconds . The distribution of her race times is normally distributed. We are interested in one of her randomly selected laps. (Source: log book of Terri Vogel) Let X be the number of seconds for a randomly selected lap. Round all answers to 4 decimal places where possible.b. Find the proportion of her laps that are completed between 131.08 and 134.03 seconds. ___________________c. The fastest 2% of laps are under seconds.____________________d. The middle 70% of her laps are from ____ seconds to ____ seconds.
4
1. The amount of time a Tech student spends on Instagram has an approximately exponential distribution with mean 60 minutes. a. What is the probability a randomly selected student spends less than 45 on Instagram? b. Illustrate your answer from a. using the pdf c. Find the cumulative distribution function for the time students spend on Instagram. d. What is the probability a randomly selected student is on Instagram for a time within 2 standard deviation of the mean?
Over the past six years, a stock had annual returns of 14 percent, -3 percent, 8 percent, 21 percent, -16 percent, and 4 percent, respectively. What is the standard deviation of these returns? 11.27 percent 13.05 percent 13.59 percent 15.08 percent 14.40 percent
The figure in the popup window, shows the one-year return distribution for RCS stock. Calculate: a. The expected return. b. The standard deviation of the return. Note: Make sure to round all intermediate calculations to at least five decimal places.
Empirical research on stock market data for two consecutive trading days indicates that 60% of the stocks that went up on the first day also went up on the second day. Yesterday, 600 stocks went up. Answer the following. (If necessary, consult a list of formulas.) (a) Find the mean of p, where p gives the proportion of the 600 stocks that went up yesterday that will go up today. (b) Find the standard deviation of p. (c) Compute an approximation for P(p <0.58), which is the probability that fewer than 58% of the stocks that went up yesterday will go up again today. Round your answer to four decimal places.
Please explain
Find the mean and standard deviation for each Poisson: a. A = 6 (Round your standard deviation to 3 decimal places.) Mean Standard deviation b. A = 18 (Round your standard deviation to 3 decimal places.) Mean Standard deviation c. A = 3 (Round your standard deviation to 3 decimal places.) Mean Standard deviation
A stock has an annual expected return of 15% and a standard deviation of 50%. An investor in this stock can expect to lose 10% of their investment or more about once every _____ year(s).a. 5 b. 3 c. 4 d. 2 e. 1. Need typed answer only .Please give answer within 45 minutes
A stock had annual returns of 5.3 percent, −2.7 percent, 16.2 percent, and 13.6 percent over the past four years. Which one of the following best describes the probability that this stock will produce a return of 20 percent or more in a single year? Less than .5 percent Less than 1 percent but more than .5 percent Less than 2.5 percent but more than .5 percent Less than 16 percent but more than 2.5 percent More than 16 percent
Suppose that the annual rate of return for a common biotechnology stock is normally distributed with a mean of 4% and a standard deviation of 4%. Find the probability that the one-year return of this stock will be positive. Round your answer to at least four decimal places. 0 X Ś

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