Assume that the returns from holding French shares are normally distributed. From Table 9.2, what is the
Question:
Assume that the returns from holding French shares are normally distributed. From Table 9.2, what is the approximate normal distribution probability that your money will double in value in a single year? Triple in value?
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Table 9.2 Year-by-Year Stock Market Returns for Different Countries, 2005-2014 Date China Denmark France Germany India Italy Netherlands Norway Spain Sweden Switzerland UK US 16.71 3.84 2005 -8.33 37.96 2006 130.43 10.50 2007 96.66 5.13 23.32 26.99 36.44 15.99 16.55 21.04 41.01 15.22 22.29 60.49 -6.95 10.71 13.62 31.47 15.85 -3.43 -34.77 1.31 3.80 3.53 2008 -65.39-46.63 -42.68 -40.37 -31.33-38.49 -54.32-49.53 80.30 19.47 2009 79.98 35.92 22.32 23.85 25.25 15.41 4.81 -51.50 36.90 8.76 -12.53 6.73 14.93 18.27 51.81 18.22 28.84 33.02 31.15 19.09 13.45 7.32 -5.74 -52.59-39.43 -38.75 55.47 29.84 43.69 16.68-17.18 23.66 -8.85 -11.78 -15.08 9.79 -6.38 10.54 22.89 21.42 2.81 3.66 9.87 2010 -14.31 37.19 -0.90 17.33 -0.79 -8.59 2011 -21.68 -13.81 -17.40 -13.08 2012 3.17 13.00 25.30 30.88 5.30 14.93 24.63 24.05 2013 -6.75 17.99 25.48 4.96 16.56 20.66 20.24 9.51 2014 52.87 20.95 -0.54 2.65 32.40 0.23 6.60 16.09-12.10 -25.87-24.38 22.07 23.45 9.00 14.06 -5.55 -1.12 5.84 13.41 14.43 29.60 -2.71 11.39
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Corporate Finance
ISBN: 9780077173630
3rd Edition
Authors: David Hillier, Stephen A. Ross, Randolph W. Westerfield, Bradford D. Jordan, Jeffrey F. Jaffe
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