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Assuming the rates of return associated with a given asset investment are normally distribu The expected return is 18.9% and coefficient of variation is 0.75, answer the following questions: a) Find the standard deviations of return b) Calculate the range of expected return outcomes associated with the following probabilities of occurrence (1) 68%, (2) 95% and (3) 99%

Assuming the rates of return associated with a given asset investment are normally distribu The expected return is 18.9% and coefficient of variation is 0.75, answer the following questions: a) Find the standard deviations of return b) Calculate the range of expected return outcomes associated with the following probabilities of occurrence (1) 68%, (2) 95% and (3) 99%

Essentials Of Investments
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
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Question 2 Assuming the rates of return associated with a given asset investment are normally distributed. The expected return is 18.9% and coefficient of variation is 0.75, answer the following questions: a) Find the standard deviations of return b) Calculate the range of expected return outcomes associated with the following probabilities of occurrence (1) 68%, (2) 95% and (3) 99%
Transcribed Image Text:Question 2 Assuming the rates of return associated with a given asset investment are normally distributed. The expected return is 18.9% and coefficient of variation is 0.75, answer the following questions: a) Find the standard deviations of return b) Calculate the range of expected return outcomes associated with the following probabilities of occurrence (1) 68%, (2) 95% and (3) 99%
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