The average return for large-cap domestic stock funds over three years was 14.4%. Assume the three-year returns were normally distributed across funds with a standard deviation of 4.4%. a. What is the probability an individual large-cap domestic stock fund had a three-year return of at least 20% (to 4 decimals)? 0.1046 b. What is the probability an individual large-cap domestic stock fund had a three-year return of 10% or less (to 4 decimals)? 0.1424 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)? 20.11 %

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
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Chapter10: Statistics
Section10.4: Distributions Of Data
Problem 19PFA
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The average return for large-cap domestic stock funds over three years was 14.4%. Assume the three-year
returns were normally distributed across funds with a standard deviation of 4.4%.
a. What is the probability an individual large-cap domestic stock fund had a three-year return of at least 20% (to
4 decimals)?
0.1046
b. What is the probability an individual large-cap domestic stock fund had a three-year return of 10% or less (to
4 decimals)?
0.1424 8
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)?
20.11
%
Transcribed Image Text:The average return for large-cap domestic stock funds over three years was 14.4%. Assume the three-year returns were normally distributed across funds with a standard deviation of 4.4%. a. What is the probability an individual large-cap domestic stock fund had a three-year return of at least 20% (to 4 decimals)? 0.1046 b. What is the probability an individual large-cap domestic stock fund had a three-year return of 10% or less (to 4 decimals)? 0.1424 8 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)? 20.11 %
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