Suppose the returns on your company are normally distributed. The historical average share price return for your

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Suppose the returns on your company are normally distributed.

The historical average share price return for your firm is 5.8 per cent with a standard deviation of 9.3 per cent. What is the approximate probability that your return will be less than –3.5 per cent in a given year? What range of returns would you expect to see 95 per cent of the time? What range would you expect to see 99 per cent of the time?

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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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