Question: Below are the historical arithmetic average returns and standard deviations for different asset classes. Asset class Mean return Standard deviation T-bills 0.035 0.031 Corporate bonds
Below are the historical arithmetic average returns and standard deviations for different asset classes. Asset class Mean return Standard deviation T-bills 0.035 0.031 Corporate bonds 0.063 0.084 Small company stocks 0.169 0.323 Large company stocks 0.121 0.202 Assume that the returns are normally distributed. Use Excel's NORM.DIST() function to answer the following questions.
Attempt 1/10 for 10 pts. Part 1 What is the probability that the return on corporate bonds will be less than 8%?
Attempt 1/10 for 10 pts. Part 2 What is the probability that the return on small company stocks will be less than 8%?
Attempt 1/10 for 10 pts. Part 3 What is the probability that the return on large-company stocks will be greater than 10%?
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