Question: Suppose the average return on Asset A is 6.8 percent and the standard deviation is 8 percent and the average return and standard deviation on
Suppose the average return on Asset A is 6.8 percent and the standard deviation is 8 percent and the average return and standard deviation on Asset B are 3.9 percent and 3.3 percent, respectively. Further assume that the returns are normally distributed. Use the NORMDIST function in Excel to answer the following questions. b. What is the probability that in any given year, the return on Asset B will be greater than 10 percent? Less than 0 percent? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
