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 16.2 percent and the standard deviation of this asset for the period was 34.7 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 % %

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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 16.2 percent and the standard deviation of this asset for the period was 34.7 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
%
%
Transcribed Image Text: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 16.2 percent and the standard deviation of this asset for the period was 34.7 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 % %
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