Question: Suppose the returns on long-term government bonds are normally distributed. Based on the historical record, what is the approximate probability that your return on these

Suppose the returns on long-term government bonds are normally distributed. Based on the historical record, what is the approximate probability that your return on these bonds will be less than -3.9 percent in a given year? What range of returns would you expect to see 95 percent of the time? What range would you expect to see 99 percent of the time?

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Looking at the longterm government bond return history in Figure 1010 we see that the mean return wa... View full answer

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