# Question

Assume the annual mean return on ABC stock is around 15% and the annual standard deviation is around 25%. Assume the annual and daily returns on ABC stock are normally distributed.

a. What is the probability that ABC will lose money during a year?

b. There is a 5% chance that ABC will earn a return of at least what value during a year?

c. There is a 10% chance that ABC will earn a return of less than or equal to what value during a year?

d. What is the probability that ABC will earn at least 35% during a year?

e. Assume there are 252 trading days in a year. What is the probability that ABC will lose money on a given day?

a. What is the probability that ABC will lose money during a year?

b. There is a 5% chance that ABC will earn a return of at least what value during a year?

c. There is a 10% chance that ABC will earn a return of less than or equal to what value during a year?

d. What is the probability that ABC will earn at least 35% during a year?

e. Assume there are 252 trading days in a year. What is the probability that ABC will lose money on a given day?

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