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 15.7 percent and the standard deviation of this asset for the period was 33.6 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 % %
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 15.7 percent and the standard deviation of this asset for the period was 33.6 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 % %
A First Course in Probability (10th Edition)
10th Edition
ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
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Vijay
![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 15.7 percent and the standard deviation of this asset for the period was 33.6 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
%
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa6fc4612-2efd-4a32-ba9d-81b063460076%2Ffefee7db-6616-446f-bff4-aded40c92a69%2Fmaiq0ek_processed.jpeg&w=3840&q=75)
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 15.7 percent and the standard deviation of this asset for the period was 33.6 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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