Suppose that the returns on an investment are normally distributed with an expected return of 8%...

Suppose that the returns on an investment are normally distributed with an expected return of 8% and standard deviation of 4%. What is the likelihood of making a negative return? (Hint: the area under a curve for 1 std dev is 34.13%, 2 std dev is 47.73% and 3 std dev is 49.87%).

A. 47.73%
B. 34.13%
C. 15.87%
D. 2.27%

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jeff jeffy answered 1 year ago

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