Please don't use Ai solution Assume that the returns from an asset are normally distributed. The average annualreturn for this asset over a specific period was 14.8 percent and the standard deviation ofthe asset was 43.71 percent. Use the NORMDIST function in Excel® to answer thisquestion.What is the approximate probability that your money will double in value in a single year?(Do not round intermediate calculations and enter your answer as a percent roundedto 3 decimal places, e.g., 32.161.)What is the probability of the asset tripling in value? (Do not round intermediatecalculations and enter your answer as a percent rounded to 6 decimal places, e.g.,32.161616.)Probability of doubling in valueProbability of tripling in value2.600 %0.000007 %

Step 1:Given data : Mean μ=14.8Standard deviation σ=43.71Let X be the random variable that…

Answered: Assume that the returns from an asset…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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es Suppose the returns on an asset are normally distributed. The historical average annual return for the asset was 5.7 percent and the standard deviation was 18.3 percent. a. What is the probability that your return on this asset will be less than -4.1 percent in a given year? Use the NORMDIST function in Excel® to answer this question. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What range of returns would you expect to see 95 percent of the time? (Enter your answers for the range from lowest to highest. A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) c. What range of returns would you expect to see 99 percent of the time? (Enter your answers for the range from lowest to highest. A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter…
Assume the returns from holding an asset are normally distributed. Also assume the average annual return for holding the asset a period of time was 17.1 percent and the standard deviation of this asset for the period was 35 percent. Use the NORMDIST function in Excel to answer the following questions. a. What is the approximate probability that your money will double in value in a single year? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 3 decimal places, e.g., 32.161. b. What is the approximate probability that your money will triple in value in a single year? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 8 decimal places, e.g., 32.16161616. a. Probability b. Probability % %
ok Assume the returns from holding an asset are normally distributed. Also assume the average annual return for holding the asset a period of time was 15.4 percent and the standard deviation of this asset for the period was 33.3 percent. Use the NORMDIST function in Excel to answer the following questions. a. What is the approximate probability that your money will double in value in a single year? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 3 decimal places, e.g., 32.161. b. What is the approximate probability that your money will triple in value in a single year? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 8 decimal places, e.g., 32.16161616. ences a. Probability b. Probability % %
What do I put for the number any given year
10
Consider the following asset with it's returns over the last 3 years. The arithmetic mean is 8% 1yr 2yr 3yr 8% 4% 6% What is the geometric mean? (Be sure to go out at least 4 decimal places.) Respuesta:
An investment offers a total return of 11 percent over the coming year. Alex Hamilton thinks the total real return on this investment will be only 7.4 percent. What does Alex believe the inflation rate will be over the next year? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Inflation rate %
None
Say you own an asset that had a total return last year of 17 percent. Assume the inflation rate last year was 4.8 percent. What was your real return? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Please compute Payback Period, Net Present Value (NPV) and Internal Rate of Return (IRR). For Payback Period, provide your answer to the nearest two decimal places (X.XX) -- do not write 'years' or 'yrs' please. For NPV, please indicate the whole dollar value with proper commas -- do not use dollar signs. For IRR, list the percentage to the nearest two places (X.XX%) and include the percent sign. Thank you for the help!
Assume that at the beginning of the year, you purchase an investment for $7,200 that pays $100 annual income. Also assume the investment's value has decreased to $6,800 by the end of the year. (a) What is the rate of return for this investment? (Input the amount as a positive value. Enter your answer as a percent rounded to 2 decimal places.) Rate of return % (b) Is the rate of return a positive or negative number? Positive O Negative
Consider that you have $4,332,989 to invest across three assets using the price weighted methodology. Your analysis of these assets has provided the information in the two tables below. (Note: numbers in red are negative) Asset Price at beginning of the year (in $) Expected price at the end of the year (in $) Standard deviation (%) Correlation A B C A 1.00 0.84 0.78 c. In dollars and cents, what is the expected value of this portfolio after 12 months? d. What is the standard deviation of this portfolio, in percentage terms? A B 155.55 137.22 182.22 164.77 42.11 Required a. What is the expected compound annual growth rate of return for this portfolio, in percentage terms? b. What is the expected continuously compounded return on this portfolio in percentage terms? B 0.84 1.00 0.44 41.50 с 0.78 0.44 1.00 C 88.14 104.12 42.33

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