# Question: An initial public offering IPO is the first sale of

An initial public offering (IPO) is the first sale of stock by a private company to the public. In a study of more than 4000 IPOs, researchers found the average annual return over a five-year period for firms issuing an IPO was 5.1. If the distribution describing the returns reported for all the various IPO firms in the study is normal, with a standard deviation of 2.2%, what is the likelihood that a randomly selected IPO from the study had a 5-year average annual return that was

a. Negative?

b. Between 2.0% and 4.0%?

c. There is a .05 probability that the stock had a 5-year average annual return of at least______ %.

d. There is a .25 probability that the stock had a 5-year average annual return of less than______ %.

a. Negative?

b. Between 2.0% and 4.0%?

c. There is a .05 probability that the stock had a 5-year average annual return of at least______ %.

d. There is a .25 probability that the stock had a 5-year average annual return of less than______ %.

**View Solution:**## Answer to relevant Questions

IQ tests have been used for more than a century to try to measure human intelligence. (They were originally intended to identify children who needed special education.) When an IQ test is developed, a sample representing the ...The number of minutes of hot water you can expect from the shower in your dormitory is defined by the probability density function: where x = values for the random variable “minutes of hot water” a. Determine the ...A survey done for the Bermuda tourist industry reported that the average cruise ship visitor to Bermuda spends $185 for souvenirs, etc. (source: BermudaSun.org). Assume the distribution of visitor spending is uniform, and ...Your form produces precision engine parts that must conform to fairly rigid diameter specifications. Diameters follow a normal distribution with a mean of 125 mm and a standard deviation of 4 mm. What percentage of diameters ...The germination time for a newly developed seed has a normal distribution, with a mean germination time of 16.4 days and a standard deviation of 2.2 days. a. What percentage of the seeds has a germination period between 15 ...Post your question