Assume the return on stocks follows a normal distribution. Is it more likely that a stock will
Question:
Assume the return on stocks follows a normal distribution. Is it more likely that a stock will return between -1 and +1 standard deviations from the mean or between -2 and +2 standard deviations from the mean? Why?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 66% (6 reviews)
It is more likely that a stock will return between 1 and 1 ...View the full answer
Answered By
James Warinda
Hi! I’m James Otieno and I'm an experienced professional online tutor with countless hours of success in tutoring many subjects in different disciplines. Specifically, I have handled general management and general business as a tutor in Chegg, Help in Homework and Trans tutor accounts.
I believe that my experience has made me the perfect tutor for students of all ages, so I'm confident I can help you too with finding the solution to your problems. In addition, my approach is compatible with most educational methods and philosophies which means it will be easy for you to find a way in which we can work on things together. In addition, my long experience in the educational field has allowed me to develop a unique approach that is both productive and enjoyable.
I have tutored in course hero for quite some time and was among the top tutors awarded having high helpful rates and reviews. In addition, I have also been lucky enough to be nominated a finalist for the 2nd annual course hero award and the best tutor of the month in may 2022.
I will make sure that any student of yours will have an amazing time at learning with me, because I really care about helping people achieve their goals so if you don't have any worries or concerns whatsoever you should place your trust on me and let me help you get every single thing that you're looking for and more.
In my experience, I have observed that students tend to reach their potential in academics very easily when they are tutored by someone who is extremely dedicated to their academic career not just as a businessman but as a human being in general.
I have successfully tutored many students from different grades and from all sorts of backgrounds, so I'm confident I can help anyone find the solution to their problems and achieve
0.00
0 Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
A biased weather forecaster makes daily predictions about the temperature, in degrees Fahren- heit, at a station at noon each day. Let random variable W represent the forecast error for any given...
-
Company WatchMyRisk is trying to evaluate the market risk for the two securities it holds. The first security, stock A, has a market position value of $5,000. The second security is stock B, with a...
-
How can you determine whether a distribution is approximately normal? A statistical theorem called Chebyshevs theorem states that the minimum percent of data between plus and minus K standard...
-
Two independent situations follow: 1. Ready Car Rental leased a car to Culver Company for three months. Terms of the lease agreement call for monthly payments of $885, beginning on May 21, 2024....
-
Suppose Y 1 , Y 2 , . . . , Y n is a random sample from the exponential pdf, f Y (y; ) = e y , y > 0. (a) Show that n = Y 1 is not consistent for . (b) Show that n = is not consistent for . . i=1
-
Find the equation of the regression line for the data. Then construct a scatter plot of (x, y) and sketch the regression line with it. Use the data shown in the table given below. x y 1 ... 695 2 ......
-
What is a double-barreled question?
-
Prepare journal entries to record the following. (a) Perez Company retires its delivery equipment, which cost $44,000. Accumulated depreciation is also $44,000 on this delivery equipment. No salvage...
-
What is the duration (in years) of an 8% 2yr bond, with semi-annually compounded interest and a ytm of 10%? What is the modified duration (in payment periods) of an 8% 2yr bond with semi-annual...
-
You are an analyst at an asset management fund. The fund currently has five bonds in its portfolio with the attributes shown below. The funds founder believes that it is most likely that bond yields...
-
A portfolio includes shares of United Airlines stock that were purchased at different times and different prices. Which measure is best to determine the average cost of the shares of the stock? a....
-
You purchased 1,000 shares of a stock for $12 per share. Then, two months later, you purchased an additional 500 shares of the same stock at $9 per share. Calculate the weighted mean of the purchase...
-
When implementing the balanced scorecard, why do some managers use a different term to describe it?
-
Find the rate of depreciation if you bought a car for $20,000 and, after 4 years, it is worth $12,800. Round to the nearest hundredth. Use the depreciation model y = a (1 - r) ^ t
-
14 What is a function that could have as its derivative? X
-
3. (2 marks) If f(x) = g(lnx), where g'(0) = -1, find f'(1). Answer
-
Mondrian Company show the following balances. Prepare an Income statement, statement of retained earnings and a balance sheet. Cash 14,900 Accounts receivable 6,200 Supplies 8,400 Equipment 15,900...
-
What is the area between the curves y = x and y = x + 2x? (Solve algebraically by integrating with respect to x.). 0 120 O 2000 16 2|3
-
The Cost Department of Benjamin Products Company prepared the following flexible budget for Department 2 for June: Factory overhead is charged to production at the rate of $3.30 per direct labor...
-
Swifty company is a publicly held corporation whose $1 par value stock is actively traded at $30 per share. The company issued 3400 shares of stock to acquire land recently advertised at $93000. When...
-
Quantas Airways: Needs to keep costs low while providing a high level of customer service. Management had to decide whether to replace its 30-year-old IT infrastructure with newer technology or...
-
What are the advantages and disadvantages of allowing employees to use their personal smartphones for work?
-
What management , organization, and technology factors should be addressed when deciding whether to allow employees to use their personal smartphones for work?
-
what ways does organizational culture contribute to the cultivation of a sense of belonging, identity, and cohesion among employees, and how do these factors impact employee engagement and retention ?
-
Solve this system of equations == -11 14 3x - y 3x+4y = I y
-
There are only two risky assets A and B with expected returns F = 30 % and r = 20 % The covariance matrix of their returns is (a) [0.0576 0.0288 [0.0288 0.0256] Solve for the minimum-variance...
Study smarter with the SolutionInn App