QUESTION 19 Information for Questions 19-21: The S&P 500 is a collection of S500 stocks of publicly traded companies, Using data obtained from YahoolFinance, the monthly rates of return of the S& P 500 from 1950 through 2013 normally distributed. The mean rate of return is 0.007443 and the standard deviation is 0.04135. What is the probability that a randomly selected month has a positive rate of return? That is, what is PX > 0)?
QUESTION 19 Information for Questions 19-21: The S&P 500 is a collection of S500 stocks of publicly traded companies, Using data obtained from YahoolFinance, the monthly rates of return of the S& P 500 from 1950 through 2013 normally distributed. The mean rate of return is 0.007443 and the standard deviation is 0.04135. What is the probability that a randomly selected month has a positive rate of return? That is, what is PX > 0)?
MATLAB: An Introduction with Applications
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Author:Amos Gilat
Publisher:Amos Gilat
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Binomial Distribution
Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.
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
Transcribed Image Text:QUESTION 19
mformatioh for Questions 19- 21: The S& P 500 is a collection of 500 stocks of publicy traded companies, Using data obtained from YahoolFinance, the monthly rates of return of the S & P 500 from 1950 through 2015
normally distributed. The mean rate of return is 0.007443 and the standard deviation is 0.04135.
What is the probability that a randomly selected month has a positive rate of return? That is, what is POX > 0)?

Transcribed Image Text:QUESTION 21
What is the probability that the mean monthly return for a five year period is positive? That is, for n = 60 months, what is P(the sample mean (x-bar) > 0)?
O a. 0.84
b. 0.16
O c. 0.50
O d. 0.92
O e. 0.08
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