Question: Normal probability distribution Assuming that the rates of return associated with a given asset investment are normally distributed; that the expected return,r overbar r ,
Normal probability distributionAssuming that the rates of return associated with a given asset investment are normally distributed; that the expected return,r overbarr, is 18.9%; and that the coefficient of variation,CV, is 0.75, answer the following questions:
a.Find the standard deviation of returns,
b.Calculate the range of expected return outcomes associated with the following probabilities of occurrence: (1) 68%, (2) 95%, (3) 99%.
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