Saturday, 7 June 2014

Summer Storme is analyzing an investment.

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 is the probability that the return will be greater than 10 percent? 20 percent? 30 percent? 40 percent? 50 percent?

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