A financial advisor informs a client that the expected return on a portfolio is 8 percent with a standard deviation of 12 percent. There is a 25% chance that the return would be negative and a 15% chance that the return would be above 16 percent. If the advisor is right about her assessment, is it reasonable to assume that the underlying return distribution is normal?
Answer to relevant QuestionsA packaging system ills boxes to an average weight of 18 ounces with a standard deviation of 0.2 ounce. It is reasonable to assume that the weights are normally distributed. Calculate the 1st, 2nd, and 3rd quartiles of the ...The manager of a night club in Boston stated that 95% of the customers are between the ages of 22 and 28 years. If the age of customers is normally distributed with a mean of 25 years, calculate its standard deviation. First introduced in Los Angeles, the concept of Korean style tacos sold from a catering truck has been gaining popularity nationally (The New York Times, July 27, 2010). This taco is an interesting mix of corn tortillas with ...Let X be exponentially distributed with ƛ = 0.5. In addition to providing the answer, state the relevant Excel commands.a. P(X ≤ 1)b. P(2A florist makes deliveries between 1:00 pm and 5:00 pm daily. Assume delivery times follow the continuous uniform distribution. a. Calculate the mean and the variance of this distribution. b. Determine the percentage of ...
Post your question