the capital asset pricing model is a financial model that assumes returns on a portfolio are normally distributed. suppose a portfolio has an average annual return of 14.7% (an average gain of 14.7%) with a standard deviation of 33%. A return of 0% means the value of the portfolio doesn't change, a negative return means that the portfolio loses money, and a positive return means that the portfolio gains money. a)what percent of years does this portfolio lose money, (have a return less than 0%)? b)what is the cutoff for the highest 15% of annual returns with this portfolio?
Contingency Table
A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.
Binomial Distribution
Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.
the capital asset pricing model is a financial model that assumes returns on a portfolio are
a)what percent of years does this portfolio lose money, (have a return less than 0%)?
b)what is the cutoff for the highest 15% of annual returns with this portfolio?
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