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 18.9%;
Normal probability distribution Assuming that the rates of return associated with a given asset investment are normally distributed that the expected return, r, is 18.9%; and that the coefficient of variation, CV, is 1.13, answer the following questions: a. Find the standard deviation of returns, or b. Calculate the range of expected return outcomes associated with the following probabilities of occurrence: (1) 68%, (2) 95%, (3) 99%. a. The standard deviation of returns, or is 1%. (Round to three decimal places.) b. (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 0% (Round to two decimal places) ng
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