Question: Suppose the average return on Asset A is 6.4 percent and the standard deviation is 7.6 percent, and the average return and standard deviation on

Suppose the average return on Asset A is 6.4 percent and the standard deviation is 7.6 percent, and the average return and standard deviation on Asset B are 3.5 percent and 3 percent, respectively. Further assume that the returns are normally distributed. Use the NORMDIST function in Excel to answer the following questions. a. What is the probability that in any given year, the return on Asset A will be greater than 9 percent? Less than 0 percent? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) % Greater than 9 percent Less than 0 percent % b. What is the probability that in any given year, the return on Asset B will be greater than 9 percent? Less than 0 percent? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) % Greater than 9 percent Less than 0 percent % C-1 In a particular year, the return on Asset A was -4.31 percent. How likely is it that a return at least that low return will recur at some point in the future? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Probability % C-2 Asset B had a return of 10.2 percent in this same year. How likely is it that return at least that high will recur at some point in the future? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Probability
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