Question: The article mentioned in Problem 7.28 reported that the stock market in China had a mean return of 3.17% in 2013. Assume that the returns
The article mentioned in Problem 7.28 reported that the stock market in China had a mean return of 3.17% in 2013. Assume that the returns for stocks on the Chinese stock market were distributed normally, with a mean of 3.17 and a standard deviation of 10. If you select an individual stock from this population, what is the probability that it would have a return
a. Less than 0 (i. e., a loss)?
b. Between - 10 and - 20?
c. Greater than - 5? If you selected a random sample of four stocks from this population, what is the probability that the sample would have a mean return
d. Less than 0 (a loss)?
e. Between - 10 and - 20?
f. Greater than - 5?
g. Compare your results in parts (d) through (f) to those in (a) through (c).
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