Suppose that an individual stock’s return is normally distributed with a mean of 10% and a standard deviation of 8%. Suppose that all stocks had the same distribution of returns. Suppose that all stocks have the same distribution of returns (and the return on 1 stock is independent of the return on another stock). What is the probability that in a sample of 40 stocks that the average return is at least 12%? (please round your answer to 4 decimal places)

Suppose that an individual stock’s return is normally distributed with a mean of 10% and a standard deviation of 8%. Suppose that all stocks had the same distribution of returns. Suppose that all stocks have the same distribution of returns (and the return on 1 stock is independent of the return on another stock). What is the probability that in a sample of 40 stocks that the average return is at least 12%? (please round your answer to 4 decimal places)

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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