Suppose the returns on an asset are normally distributed. The historical average annual return for the asset was 6.6 percent and thestandard deviation was 16.5 percent.a. What is the probability that your return on this asset will be less than -8.5 percent in a given year? Use the NORMDIST functionin Excel® to answer this question.Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.b. What range of returns would you expect to see 95 percent of the time?Note: Enter your answers for the range from lowest to highest. A negative answer should be indicated by a minus sign. Donot round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.c. What range of returns would you expect to see 99 percent of the time?Note: Enter your answers for the range from lowest to highest. A negative answer should be indicated by a minus sign. Donot round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.a. Probablilityb. 95% levelc. 99% level%%%toto%%

The provided information is as follows:The return on assets is normally distributed.The population…

Answered: Suppose the returns on an asset are…

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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Pax World Balanced is a highly respected, socially responsible mutual fund of stocks and bonds. Vanguard Balanced Index is another highly regarded fund that represents the entire U.S. stock and bond market (an index fund). The mean and standard deviation of annualized percent returns are shown below. The annualized mean and standard deviation are for a recent 10-years period.†. If x represents return and s represents risk, then explain why the coefficient of variation can be taken to represent risk per unit of return. From this point of view, which fund appears to be better? Explain. A. Since the CV is s/s2 we can say that the CV represents the risk per unit of return; the Pax fund appears to be better because the CV is smaller. B. Since the CV is s/s2 we can say that the CV represents the risk per unit of return; the Vanguard fund appears to be better because the CV is smaller. C. Since the CV is s/x we can say that the CV represents the risk per unit of return; the Pax fund…
The time that a student spends on finding a certain book in library have an exponential distribution of 8 minutes. Find the following : A. Rate parameter B. standard deviation C. probability that the time spent in searching is less than 5 minutes D. 50th percentile E. Time spent that belongs to the highest 5%
Solve for the mean and standard deviation of the following Binomial distributions. a. n = 20 and p = 0.70 b. n = 70 and p = 0.35 c. n = 100 and p = 0.50
1. The amount of time a Tech student spends on Instagram has an approximately exponential distribution with mean 60 minutes. a. What is the probability a randomly selected student spends less than 45 on Instagram? b. Illustrate your answer from a. using the pdf c. Find the cumulative distribution function for the time students spend on Instagram. d. What is the probability a randomly selected student is on Instagram for a time within 2 standard deviation of the mean?
Over the past six years, a stock had annual returns of 14 percent, -3 percent, 8 percent, 21 percent, -16 percent, and 4 percent, respectively. What is the standard deviation of these returns? 11.27 percent 13.05 percent 13.59 percent 15.08 percent 14.40 percent
Suppose that the length of long distance phone calls, measured in minutes, is known to have an exponential distribution with the average length of a call equal to $24 minutes. The 16th percentile is a phone call that lasts minutes.
please answer in 30 minutes.
Assume that the readings on the thermometers are normally distributed with a mean of 0 degrees and standard deviation of 1.00 degrees C. A thermometer is randomly selected and tested. Draw a sketch and find the temperature reading corresponding to Upper P 84, the 84 th percentile. This is the temperature reading separating the bottom 84 % from the top 16 %. A. Which graph represents Upper P 84? B. The temperature for Upper P 84 is approximately (Round to two decimal places as needed.)
Find the mean and standard deviation for each Poisson: a. A = 6 (Round your standard deviation to 3 decimal places.) Mean Standard deviation b. A = 18 (Round your standard deviation to 3 decimal places.) Mean Standard deviation c. A = 3 (Round your standard deviation to 3 decimal places.) Mean Standard deviation
A stock has an annual expected return of 15% and a standard deviation of 50%. An investor in this stock can expect to lose 10% of their investment or more about once every _____ year(s).a. 5 b. 3 c. 4 d. 2 e. 1. Need typed answer only .Please give answer within 45 minutes
Losses follow an exponential distribution with mean 5000. An insurance policy covers losses subject to a franchise deductible of 2000. Determine the expected insurance payment per loss.
4b.) Draw the graphs. Round your final answers up to 6 decimal places, if applicable. Give the correct units.

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