Suppose that the annual rate of return for a common biotechnology stock is normally distributed with a mean of 6% and a standard deviation of 5%. Find the probability that the one-year return of this stock will be negative. Round your answer to at least four decimal places.---This problem involves finding the probability of a negative return for a biotechnology stock, assuming the returns follow a normal distribution. The mean return is 6%, and the standard deviation is 5%. To find the probability of a negative return (less than 0%), use the properties of the normal distribution to calculate this probability. Remember to round your answer to four decimal places. This involves using statistical tables or software to find the cumulative probability associated with a z-score calculated for 0%.

Answer : From the given data , Mean (μ) = 6% = 0.06 Standard deviation (σ) = 5% = 0.05 The…

Answered: Suppose that the annual rate of return…

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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Suppose that the annual rate of return for a common biotechnology stock is normally distributed with a mean of 6% and a standard deviation of 5%. Find the probability that the one-year return of this stock will be negative. Round your answer to at least four decimal places. 0 X S