Question

A bank estimates that its profit next year is normally distributed with a mean of 0.8% of assets and the standard deviation of 2% of assets. How much equity (as a percentage of assets) does the company need to be
(a) 99% sure that it will have a positive equity at the end of the year and
(b) 99.9% sure that it will have positive equity at the end of the year? Ignore taxes.


$1.99
Sales0
Views221
Comments0
  • CreatedJuly 30, 2015
  • Files Included
Post your question
5000