Question: Normal probability distribution Assuming that the rates of return associated with a given asset investment are normally distributed; that the expected return, r , is

Normal probability distributionAssuming that the rates of return associated with a given asset investment are normally distributed; that the expected return, r, is 16.9%; and that the coefficient of variation, CV, is 1.92, answer the following questions:

a.Find the standard deviation of returns, r.

b.Calculate the range of expected return outcomes associated with the following probabilities of occurrence: (1) 68%, (2) 95%, (3) 99%.

1.The standard deviation of returns, r, is .....?%. (Round to three decimal places.)

2. (1)The lowest possible expected return associated with the 68% probability of occurrence is ....?%. (Round to two decimal places.)

The highest possible expected return associated with the 68% probability of occurrence is

.....?%. (Round to two decimal places.)

(2) The lowest possible expected return associated with the 95% probability of occurrence is

....? (Round to two decimal places.)

The highest possible expected return associated with the 95% probability of occurrence is ....?(Round to two decimal places.)

(3) The lowest possible expected return associated with the 99% probability of occurrence is

....? (Round to two decimal places.)

The highest possible expected return associated with the 99% probability of occurrence is ...?%. (Round to two decimal places.)

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