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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