a. In words, how do we calculate a variance? A standard deviation? b. With a normal distribution,
Question:
a. In words, how do we calculate a variance? A standard deviation?
b. With a normal distribution, what is the probability of ending up more than one standard deviation below the average?
c. Assuming that long-term corporate bonds have an approximately normal distribution, what is the approximate probability of earning 14.6 percent or more in a given year? With T-bills, roughly what is this probability?
d. What is the second lesson from capital market history?
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a Variance is a measure of how spread out a set of numbers or data points is It quantifies the average squared deviation from the mean Step1 The follo...View the full answer
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Related Book For 
Fundamentals of corporate finance
ISBN: 978-0073382395
9th edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
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