Suppose the annual return on XYZ stock follows a normal distribution with mean 0.12 and standard deviation

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Suppose the annual return on XYZ stock follows a normal distribution with mean 0.12 and standard deviation 0.30.
a. What is the probability that XYZ’s value will decrease during a year?
b. What is the probability that the return on XYZ during a year will be at least 20%?
c. What is the probability that the return on XYZ during a year will be between –6% and 9%?
d. There is a 5% chance that the return on XYZ during a year will be greater than what value?
e. There is a 1% chance that the return on XYZ during a year will be less than what value?
f. There is a 95% chance that the return on XYZ during a year will be between which two values (equidistant from the mean)?

Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
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Data Analysis and Decision Making

ISBN: 978-0538476126

4th edition

Authors: Christian Albright, Wayne Winston, Christopher Zappe

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