Suppose the returns on long-term corporate bonds are normally distributed. Suppose the historical average annual return for the asset was 6.6% and the standard deviation was 16.5%. What is the approximate probability that your return on these bonds will be less than -8.5% in a given year? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Probability % What range of returns would you expect to see 95% of the time? (Enter your answers for the range from lowest to highest. Negative answers should be indicated by a minus sign. Do not round intermediate calculations. Round the final answers to 2 decimal places.) 95% level % to % What range would you expect to see 99.7% of the time? (Enter your answers for the range from lowest to highest. Negative answers should be indicated by a minus sign. Do not round intermediate calculations. Round the final answers to 2 decimal places.) 99% level % % to

College Algebra (MindTap Course List)
12th Edition
ISBN:9781305652231
Author:R. David Gustafson, Jeff Hughes
Publisher:R. David Gustafson, Jeff Hughes
Chapter8: Sequences, Series, And Probability
Section8.CR: Chapter Review
Problem 37E: Find the positive geometric mean between 4 and 64.
Question

Hd.118.

Suppose the returns on long-term corporate bonds are normally distributed. Suppose the historical average annual return for the asset
was 6.6% and the standard deviation was 16.5%.
What is the approximate probability that your return on these bonds will be less than -8.5% in a given year? (Do not round
intermediate calculations. Round your final answer to 2 decimal places.)
Probability
What range of returns would you expect to see 95% of the time? (Enter your answers for the range from lowest to highest. Negative
answers should be indicated by a minus sign. Do not round intermediate calculations. Round the final answers to 2 decimal
places.)
95% level
1%
99% level
% to
%
What range would you expect to see 99.7% of the time? (Enter your answers for the range from lowest to highest. Negative answers
should be indicated by a minus sign. Do not round intermediate calculations. Round the final answers to 2 decimal places.)
% to
%
Transcribed Image Text:Suppose the returns on long-term corporate bonds are normally distributed. Suppose the historical average annual return for the asset was 6.6% and the standard deviation was 16.5%. What is the approximate probability that your return on these bonds will be less than -8.5% in a given year? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Probability What range of returns would you expect to see 95% of the time? (Enter your answers for the range from lowest to highest. Negative answers should be indicated by a minus sign. Do not round intermediate calculations. Round the final answers to 2 decimal places.) 95% level 1% 99% level % to % What range would you expect to see 99.7% of the time? (Enter your answers for the range from lowest to highest. Negative answers should be indicated by a minus sign. Do not round intermediate calculations. Round the final answers to 2 decimal places.) % to %
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