Question: A security with normally distributed returns has an annual expected return of 18% and standard deviation of 23%. The probability of getting a return between

A security with normally distributed returns has an annual expected return of 18% and standard deviation of 23%. The probability of getting a return between -28% and 64% in any one year is

A.68.26%

B.95.44%

C.99.74%

D.100.00%

Please explain. Thank you

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

The price of a stock is $55 at the beginning of the year and $50 at the end of the year If the stock paid a $3 dividend and inflation was 3%, what is the real holding period return for the year...

Only need 3 & 4 A security with normally distributed returns has an annual expected return of 18% and standard deviation of 23%. The probability of getting a return between -28% and 64% in any one...

Question 26 (Mandatory) (1 point) A security with normally distributed returns has an annual expected return of 18% and standard deviation of 23%. The probability of getting a return between -28% and...

1) Which of the following measures of risk best highlights the potential loss from extreme negative returns? a)Standard deviation b)Variance c)Value at risk (VaR) d)Expected return 2) A security with...

MSFT URBN $30,000 $50,000 $40,000 que 0.30 9000 1.09 54500 0.68929 27900 (2) In just a few words - e.g., "market" - define beta. Please be specific. the past 3 years. Calculate the standard deviation...

A security with normally distributed returns has an annual expected return of 18% and standard deviation of 23%. The probability of getting a return between - 28% and 64% in any one year is _____. A)...

A security with normally distributed returns has an annual expected return of 18% and standard deviation of 23%. The probability of getting a return between -28% and 64% in any one year is

A security with normally distributed returns has an annual expected return of 18% and standard deviation of 23%. The probability of getting a return between -28% and 64% in any one year is _____.

A security with normally distributed returns has an annual expected return of 18% and standard deviation of 23%. The probability of getting a return between -28% and 64% in any one year is _____....

Lily has RM10,000 that she can deposits in any of three savings accounts for a three year period. Bank A pays interest on annual basis, Bank B pays interest twice each year, and Bank C pays interest...

In Figure, block 1 of mass m 1 = 2.0kg and block 2 of mass m 2 = 3.0kg are connected by a string of negligible mass and are initially held in place. Block 2 is one a frictionless surface tilted at =...

Would you expect a difference in the severity of a natural disaster based on the degree of a countrys property rights?

A hula hoop and solid disc of equal radii are rolled, from rest and without slipping, down an incline plane. Which one will reach the bottom of the inclined plane first? Explain.

Curtin Ltd has a reconciliation problem. The bank reconciliation clerk is unable to reconcile the cash at bank value recorded in the general ledger account with the cash at bank balance disclosed on...

Monash Ltd has always had a strategy of product differentiation; that is, providing high-quality products and extracting a price premium from the market. During the recent economic downturn, Monash...

Griffith Ltd has just realised that it has a problem with its general ledger data. It posts daily transactional data from subsidiary systems to the general ledger at 10 pm each evening. The resulting...