Summer Storme is analyzing an investment The expected one year return on the investment is 20 percent The probability distribution of possible returns is approximately normal with a standard deviation of 15 percent a What are the chances that the investment will result in a negative return b What i...

a For a return that will be zero or less standardizing the deviation from the expected value of retu ...

Summer Storme is analyzing an investment. The expected one-year return on the investment is 20 percent. The

Question:

Summer Storme is analyzing an investment. The expected one-year return on the investment is 20 percent. The probability of possible returns is approximately normal with a standard deviation of 15 percent.
a. What are the chances that the investment will result in a negative return?
b. What is the probability that the return will be greater than 10 percent? 20 percent? 30 percent? 40 percent? 50 percent?
Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...