6.51

Project Description:

all the major stock market indexes posted heavy looses in 2008. the mean one-year return for stocks in the s&p 500, a group of 500 very large companies, was -38.5%. the mean one-year return for the nasdaq, a group of 3,200 small amd medium-sized companies, was -40.5%. historically, the one-year returns are approximately normal, the standard deviation in the s&p 500 is approximately 20%, and the standard deviation in the nasdq is approximately 30%.

1) what is the probability that a stock in the s&p 500 gained value in 2008?

2) what is the probability that a stock in the s&p 500 gained 10%?

3) what is the probability that a stock in the s&p 500 lost 50% or more in 2008?

4) what is the probability that a stock in the s&p 500 lost 60% or more?

5) repeat (1) through (4) for a stock in the nasdq.

6) write a short summary on your findings. be sure to include a discussion of the risks associated with a large standard deviation.
Skills Required:
Project Stats:

Price Type: Negotiable

Expired
Total Proposals: 6
1 Current viewersl
14 Total views
Project posted by:

Proposals

Proposals Reputation Price offered
  • 4.8
    546 Jobs 386 Reviews
    $0 in 0 Day
  • 4.2
    11 Jobs 9 Reviews
    $0 in 0 Day
  • 4.9
    73 Jobs 54 Reviews
    $0 in 0 Day
  • 4.6
    647 Jobs 468 Reviews
    $9 in 0 Day