Question: Please use standard normal distribution table 5. [6 marks] The return on a stock is the change in its market price plus any dividend payments
Please use "standard normal distribution table"
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5. [6 marks] The return on a stock is the change in its market price plus any dividend payments made Total return is usually expressed as a percent of the beginning price. The distribution of the annual percentage returns for all stocks listed on the S&P 500 from 1928 to 2018 (91 years) is normal with ar average return of 11.36%, with a standard deviation of 19.58%. a) What is the proportion of years with returns greater than 0% annual return? [2 marks] b) What is the proportion of years with returns between -40% and -20% annual return? [2 marks] c) Above what annual percentage return are the top 10% of the years? [2 marks]
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