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government bonds are normally distributed. Based on the information, what is the approximate probability that your return on these bonds will be less than -3.5 percent in a given year? What range of returns would you expect to see 95 percent of the time?

government bonds are normally distributed. Based on the information, what is the approximate probability that your return on these bonds will be less than -3.5 percent in a given year? What range of returns would you expect to see 95 percent of the time?

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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2. The historical annual average return on the long-term government bonds is 5.8% and its standard deviation is 9.3%. Suppose the returns on the long-term government bonds are normally distributed. Based on the information, what is the approximate probability that your return on these bonds will be less than -3.5 percent in a given year? What range of returns would you expect to see 95 percent of the time?
Transcribed Image Text:2. The historical annual average return on the long-term government bonds is 5.8% and its standard deviation is 9.3%. Suppose the returns on the long-term government bonds are normally distributed. Based on the information, what is the approximate probability that your return on these bonds will be less than -3.5 percent in a given year? What range of returns would you expect to see 95 percent of the time?
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