Assume the returns on an asset are normally distributed. Suppose the historical average annual return for the asset was 7.5 percent and the standard deviation was 12.5 percent. What is the probability that your return on this asset will be less than -7.7 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.) Probability % 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.) What range 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 your answers as a percent rounded to 2 decimal places, e.g., 32.16.) 95% level % to % 99% level % to %
Assume the returns on an asset are normally distributed. Suppose the historical average annual return for the asset was 7.5 percent and the standard deviation was 12.5 percent. What is the probability that your return on this asset will be less than -7.7 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.) Probability % 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.) What range 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 your answers as a percent rounded to 2 decimal places, e.g., 32.16.) 95% level % to % 99% level % to %
College Algebra (MindTap Course List)
12th Edition
ISBN:9781305652231
Author:R. David Gustafson, Jeff Hughes
Publisher:R. David Gustafson, Jeff Hughes
Chapter4: Polynomial And Rational Functions
Section4.6: Rational Functions
Problem 11SC: Find the mean hourly cost when the cell phone described above is used for 240 minutes.
Related questions
Question
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.) What range 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 your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
Transcribed Image Text:Assume the returns on an asset are normally distributed. Suppose the historical average
annual return for the asset was 7.5 percent and the standard deviation was 12.5 percent.
What is the probability that your return on this asset will be less than -7.7 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.)
Probability
%
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.)
What range 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 your answers as a percent
rounded to 2 decimal places, e.g., 32.16.)
95% level
% to
%
99% level
% to
%
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