Based on historical daily stock prices for the first year after an IPO, the typical rate of return and the standard deviation for an IPO in the first year is 57% and 26% respectively. Assume these returns follow a normal distribution. Answer the following questions using Excel formulas a) There is a 20% probability returns for a new IPO will be above what number? b) What is the probability the rate of return for a new IPO will be positive? c) What is the probability of returning exactly 57%? d) What is the 95% confidence interval about the mean for the expected returns for a new IPO?
Based on historical daily stock prices for the first year after an IPO, the typical rate of return and the standard deviation for an IPO in the first year is 57% and 26% respectively. Assume these returns follow a normal distribution. Answer the following questions using Excel formulas a) There is a 20% probability returns for a new IPO will be above what number? b) What is the probability the rate of return for a new IPO will be positive? c) What is the probability of returning exactly 57%? d) What is the 95% confidence interval about the mean for the expected returns for a new IPO?
A First Course in Probability (10th Edition)
10th Edition
ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
Section: Chapter Questions
Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...
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Based on historical daily stock prices for the first year after an IPO, the typical rate of return and the standard deviation for an IPO in the first year is 57% and 26% respectively. Assume these returns follow a
a) There is a 20%
b) What is the probability the rate of return for a new IPO will be positive?
c) What is the probability of returning exactly 57%?
d) What is the 95% confidence interval about the
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