The average return for largecap domestic stock funds over the three years 2009–2011was 14.4% (aaii Journal, February, 2012). Assume the threeyear returns were normallydistributed across funds with a standard deviation of 4.4%.a. what is the probability an individual largecap domestic stock fund had a threeyearreturn of at least 20%?b. what is the probability an individual largecap domestic stock fund had a threeyearreturn of 10% or less?
Unitary Method
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The average return for largecap domestic stock funds over the three years 2009–2011
was 14.4% (aaii Journal, February, 2012). Assume the threeyear returns were normally
distributed across funds with a standard deviation of 4.4%.
a. what is the probability an individual largecap domestic stock fund had a threeyear
return of at least 20%?
b. what is the probability an individual largecap domestic stock fund had a threeyear
return of 10% or less?
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