The average return for large-cap domestic stock funds over three years was 14.8%. 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)? 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)? (Answer in Percent)
The average return for large-cap domestic stock funds over three years was 14.8%. 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)? 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)? (Answer in Percent)
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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The average return for large-cap domestic stock funds over three years was 14.8%. Assume the three-year returns were
a. What is the
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)? (Answer in Percent)
Transcribed Image Text:The average return for large-cap domestic stock funds over three years was 14.8%. 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)?
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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