# Question: Suppose you have invested 25 of your portfolio in four

Suppose you have invested 25% of your portfolio in four different stocks. The mean and standard deviation of the annual return on each stock are shown in the file S16_38.xlsx. The correlations between the annual returns on the four stocks are also shown in this file.

a. What is the probability that your portfolio’s annual return will exceed 20%?

b. What is the probability that your portfolio will lose money during the year?

a. What is the probability that your portfolio’s annual return will exceed 20%?

b. What is the probability that your portfolio will lose money during the year?

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

The file S02_09.xlsx lists the times required to service 200 consecutive customers at a (fictional) fast-foods restaurant.a. Create a histogram of the customer service times.How would you characterize the distribution of ...A ticket from Indianapolis to Orlando on Deleast Airlines sells for $150. The plane can hold 100 people. It costs Deleast $8000 to fly an empty plane. Each person on the plane incurs variable costs of $30 (for food and ...The annual demand for Prizdol, a prescription drug manufactured and marketed by the NuFeel Company, is normally distributed with mean 50,000 and standard deviation 12,000. Assume that demand during each of the next 10 years ...Play Things is developing a new Hannah Montana doll. The company has made the following assumptions:• The doll will sell for a random number of years from 1 to 10. Each of these 10 possibilities is equally likely. • At ...A popular restaurant in Indianapolis does a brisk business, filling virtually all of its seats from 6 P.M. until 9 P.M. Tuesday through Sunday. Its current annual revenue is $2.34 million. However, it does not currently ...Post your question