Suppose the returns on a particular asset are normally distributed. Also suppose the asset had an average return of 11.5% and a standard deviation of 27.4%. Use the NORMDIST function in Excel to determine the probability that in any given year you will lose money by investing in this asset. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.):
Suppose the returns on a particular asset are normally distributed. Also suppose the asset had an average return of 11.5% and a standard deviation of 27.4%. Use the NORMDIST function in Excel to determine the probability that in any given year you will lose money by investing in this asset. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.):
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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What do I put for the number any given year
![Suppose the returns on a particular asset are normally distributed. Also suppose the
asset had an average return of 11.5% and a standard deviation of 27.4%. Use the
NORMDIST function in Excel to determine the probability that in any given year you will
lose money by investing in this asset. (Do not round intermediate calculations and
enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.):
Probability
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1db51a50-99ce-4b9c-a754-d86e49961144%2F7b6f4295-99ea-4307-950e-63eb6455dc36%2Ff0yv44_processed.png&w=3840&q=75)
Transcribed Image Text:Suppose the returns on a particular asset are normally distributed. Also suppose the
asset had an average return of 11.5% and a standard deviation of 27.4%. Use the
NORMDIST function in Excel to determine the probability that in any given year you will
lose money by investing in this asset. (Do not round intermediate calculations and
enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.):
Probability
%
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