Question #4 The average return for a domestic stock funds over the three years was 14.4%. Assume the three-year returns were normally distributed across funds with a standard deviation of 4.4%. a) What is the probability an individual domestic stock fund had a three-year return of at least 20% ? b) What is the probability an individual domestic stock fund had a three-year return of 10% or less? c) How big does the return have to be to put a domestic stock in the top 10% for the threeyear period?

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.4: Distributions Of Data
Problem 19PFA
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Question #4 The average return for a domestic stock funds over the three years was 14.4%. Assume the three-year returns were normally distributed across funds with a standard deviation of 4.4%. a) What is the probability an individual domestic stock fund had a three-year return of at least 20% ? b) What is the probability an individual domestic stock fund had a three-year return of 10% or less? c) How big does the return have to be to put a domestic stock in the top 10% for the threeyear period? 

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