Question: Suppose the average return on Asset A is 6.6 percent and the standard deviation is 8.6 percent, and the average return and standard deviation on

Suppose the average return on Asset A is 6.6 percent and the standard deviation is 8.6 percent, and the average return and standard deviation on Asset B are 3.8 percent and 3.2 percent, respectively. Further assume that the returns are normally distributed. Use the NORMDIST function in Excel to answer the following questions.

What is the probability that in any given year, the return on Asset A will be greater than 11 percent? Less than 0 percent?

What is the probability that in any given year, the return on Asset B will be greater than 11 percent? Less than 0 percent?

In a particular year, the return on Asset A was ?4.25 percent. How likely is it that a return at least that low return will recur at some point in the future?

Asset B had a return of 9.6 percent in this same year. How likely is it that return at least that high will recur at some point in the future?

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