your ey will triple in value in a single year? d enter your answer as a percent rounded to
your ey will triple in value in a single year? d enter your answer as a percent rounded to
A First Course in Probability (10th Edition)
10th Edition
ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
Section: Chapter Questions
Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...
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Question
Transcribed Image Text:Assume the returns from holding an asset are normally distributed. Also assume the average annual return for holding the asset a
period of time was 16.3 percent and the standard deviation of this asset for the period was 34 percent. Use the NORMDIST function in
Excel to answer the following questions.
a. What is the approximate probability that your money will double in value in a single year?
Note: Do not round intermediate calculations and enter your answer as a percent rounded to 3 décimal places, e.g., 32.161.
b. What is the approximate probability that your money will triple in value in a single year?
Note: Do not round intermediate calculations and enter your answer as a percent rounded to 8 decimal places, e.g.,
32.16161616.
Answer is complete but not entirely correct.
a. Probability
0.630 %
b. Probability
0.00000200 X %
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