Question

In: Finance

Assume that an investment security has a mean return of 14% and standard deviation of 6%....

Assume that an investment security has a mean return of 14% and standard deviation of 6%. What is the probability of making a loss (to the closest percent)?

A.2%; B.10%; C.1%; D.3%; E.5%

Solutions

Expert Solution


Related Solutions

Security X has expected return of 14% and standard deviation of 22%. Security Y has expected...
Security X has expected return of 14% and standard deviation of 22%. Security Y has expected return of 16% and standard deviation of 28%. The two securities have a correlation coefficient of -1. You wish to combine the two securities in order to construct a portfolio that has a standard deviation of zero. Which percentage of your capital should you invest in security X? (Enter your answer as a percent)
Assume a security has an expected return of .12 and a standard deviation of 0.08 a)...
Assume a security has an expected return of .12 and a standard deviation of 0.08 a) What is the expected return two standard deviation above the mean and what is the probability of a return greater that this amount? B) What is the probability of a return greater than 0.04 for a given year.
Assume that tangent portfolio T has an expected return of 14%, with a standard deviation of...
Assume that tangent portfolio T has an expected return of 14%, with a standard deviation of 20%, and that the risk-free rate is 3%. You choose to invest a total of $1,000. $350 is invested in portfolio T and $650 in the risk-free asset. What are the expected return and standard deviation of your portfolio? Suppose you borrow $200 at the risk-free rate. Combining this with your original sum of $1,000, you invest a total of $1,200 in the risky...
1. Assume investment X has a standard deviation of 20%, investment Y has a standard deviation...
1. Assume investment X has a standard deviation of 20%, investment Y has a standard deviation of 20%, and X and Y have a correlation of 0.5. If 50% is invested in X and 50% is invested in Y then which is following is true? a. The portfolio standard deviation will be greater than 20% b. The portfolio standard deviation will be less than 20% 2. Which of the following is true? a. Total risk decreases as the number of...
10. Security A has an expected rate of return of 10% and a standard deviation of...
10. Security A has an expected rate of return of 10% and a standard deviation of 16%. Security B has an expected rate of return of 8% and a standard deviation of 12%. Let A and B are perfectly negatively correlated. The expected return of a risk-free portfolio formed with A and B is Select one: a. 10% b. 9.47% c. 7.86% d. 8.86%
An investment company A has an expected return of $2,000 with a standard deviation of $200....
An investment company A has an expected return of $2,000 with a standard deviation of $200. An investment in company B has an expected return of $3,000 with a standard deviation of $100. If the returns are normally distributed and independent, what is the probability that the total return from both investments will be at least $5,000?
The mean of a population is 77 and the standard deviation is 14. The shape of...
The mean of a population is 77 and the standard deviation is 14. The shape of the population is unknown. Determine the probability of each of the following occurring from this population. Appendix A Statistical Tables a. A random sample of size 33 yielding a sample mean of 78 or more b. A random sample of size 130 yielding a sample mean of between 76 and 79 c. A random sample of size 219 yielding a sample mean of less...
assume a normal distribution with a mean of 65 and standard deviation of 14 find P(56<X...
assume a normal distribution with a mean of 65 and standard deviation of 14 find P(56<X less than or equal to 68)
A normal population has a mean of 57 and a standard deviation of 14. You select...
A normal population has a mean of 57 and a standard deviation of 14. You select a random sample of 16. Round to 4 decimal places. a. 33% of the time, the sample average will be less than what specific value? Value    b. 33% of the time, the value of a randomly selected observation will be less than h. Find h. h    c. The probability that the sample average is more than k is 22%. Find k.   k...
A normally distributed population has a mean of 74 and a standard deviation of 14. Determine...
A normally distributed population has a mean of 74 and a standard deviation of 14. Determine the probability that a random sample of size 24 has an average between 71 and 80. Round to four decimal places.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT