Consider an investment for which the expected returns are normally distributed with an expected return of 11% and an annual standard deviation (SD) of 12%. What is the probability that during a given year an investor would earn a return that is: a. greater than -1%?b. lower than -1%c. lower than -13%d. greater than 11%?e. greater than 23%?f. greater than 35%?
Consider an investment for which the expected returns are normally distributed with an expected return of 11% and an annual standard deviation (SD) of 12%. What is the probability that during a given year an investor would earn a return that is: a. greater than -1%?b. lower than -1%c. lower than -13%d. greater than 11%?e. greater than 23%?f. greater than 35%?
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
Problem 1PS
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Question
Consider an investment for which the expected returns are
a. greater than -1%?
b. lower than -1%
c. lower than -13%
d. greater than 11%?
e. greater than 23%?
f. greater than 35%?
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