You buy a stock that has an annual expected return of 12.05% and a standard deviation of 29.80%. Last year, investors in the stock lost 14.78% of their money and the year before they gained 56.74%. What is the probability that the outcome on this stock will be worse
You buy a stock that has an annual expected return of 12.05% and a standard deviation of 29.80%. Last year, investors in the stock lost 14.78% of their money and the year before they gained 56.74%. What is the probability that the outcome on this stock will be worse
Calculus For The Life Sciences
2nd Edition
ISBN:9780321964038
Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Chapter13: Probability And Calculus
Section13.CR: Chapter 13 Review
Problem 9CR
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You buy a stock that has an annual expected return of 12.05% and a standard deviation of 29.80%. Last year, investors in the stock lost 14.78% of their money and the year before they gained 56.74%. What is the probability that the outcome on this stock will be worse than -14.78% or better than +56.74% this year? (This problem requires the use of the cumulative normal density table.) a. 72.55% b. 43.33% c. 38.05% d. 15.60% e. 25.08%
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