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.

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?

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