The average return for large-cap domestic stock funds over the three years 2009-2011 was 14.6%. Assume the three-year returns were normally distributed across funds with a standard deviation of 4.8%.a. What is the probability an individual large-cap domestic stock fund had a three-year return of at least 20% (to 4 decimals)?b. What is the probability an individual large-cap domestic stock fund had a three-year return of 10% or less (to 4 decimals)?c. How big does the return have to be to put a domestic stock fund in the top 10% for the three-year period (to 2 decimals)?%

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Answered: The average return for large-cap…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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The American Association of Individual Investors conducts a weekly survey of its members to measure the percent who are bullish, bearish, and neutral on the stock market for the next six months. For the week ending November 7, 2012 the survey results showed 38.5% bullish, 21.6% neutral, and 39.9% bearish (AAII website, November 12, 2012). Assume these results are based on a sample of 300 AAII members. a. Over the long-term, the proportion of bullish AAII members is .39. Conduct a hypothesis test at the 5% level of significance to see if the current sample results show that bullish sentiment differs from its long-term average of .39. What are your findings? Ho: p-Select your answer - Ha: p -Select your answer - p-value - Select your answer- Conclusion: - Select your answer - b. Over the long-term, the proportion of bearish AAII members is .30. Conduct a hypothesis test at the 1% level of significance to see if the current sample results show that bearish sentiment is above its long-term…

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