Question

Suppose the returns on long-term government bonds are normally distributed. Assume long-term government bonds have a mean return of 5.1 percent and a standard deviation of 8.6 percent.

What is the approximate probability that your return on these bonds will be less than −3.5 percent in a given year? (Do not include the percent sign (%). Round your answer to 2 decimal places (e.g., 32.16).)

Probability

%

Requirement 2:

What range of returns would you expect to see 68 percent of the time? (Do not include the percent signs (%). Negative amount should be indicated by a minus sign. Input your answers from lowest to highest to receive credit for your answers. Round your answers to 2 decimal places (e.g., 32.16).)

Expected range of returns

%

to

%

Requirement 3:

What range would you expect to see 95 percent of the time? (Do not include the percent signs (%). Negative amount should be indicated by a minus sign. Input your answers from lowest to highest to receive credit for your answers. Round your answers to 2 decimal places (e.g., 32.16).)

Answer 1