Question: Reading a report conducted on Netflix by a third party, you find the expected monthly average return and standard deviations are 4.3% and 8.8%, respectively.

Reading a report conducted on Netflix by a third party, you find the expected monthly average return and standard deviations are 4.3% and 8.8%, respectively. Assuming that the monthly returns are normally distributed, calculate the probabilities of the following events:


  • The return will be lower than -5%.
  • The return will be higher than 18%.
  • What range of return would you expect to see 68% of the time?

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