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Suppose that over a year the daily percent change (+ or -) for the S&P 500...

Suppose that over a year the daily percent change (+ or -) for the S&P 500 adjusted closing value is approximately normally distributed with a mean of +0.03% and a standard deviation of 0.97%. Use this model to answer the following questions. Show all calculations. Show the standardization calculations.
a) For a randomly selected trading day, what the is probability that the percent change is less than +1.50%?

b) For what proportion of the trading days is the percent change between -2.00% and +2.00%?

c) What is the 3rd quartile of the percent change?

d) The 80th percentile?

Solutions

Expert Solution

a) 0.9352

b) 0.9577

c) Q​​​​​​3= 0.6843%

d) P​​​​​​80 ​​= 0.8464 %

milcah answered 2 hours ago
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