Suppose the average return on an asset is 12.3 percent and the standard deviation is 20.8...

Suppose the average return on an asset is 12.3 percent and the standard deviation is 20.8 percent. Further assume that the returns are normally distributed. Use the NORMDIST function in Excel® to determine the probability that in any given year you will lose money by investing in this asset.

Probability?

Expert Solution

jeff jeffy answered 2 years ago

Suppose the average return on an asset is 12.3 percent and the standard deviation is 21.9...

Suppose the average return on an asset is 12.3 percent and the standard deviation is 21.9 percent. Further assume that the returns are normally distributed. Use the NORMDIST function in Excel® to determine the probability that in any given year you will lose money by investing in this asset.

Suppose the average return on Asset A is 7.0 percent and the standard deviation is 8.2...

Suppose the average return on Asset A is 7.0 percent and the standard deviation is 8.2 percent and the average return and standard deviation on Asset B are 4.1 percent and 3.5 percent, respectively. Further assume that the returns are normally distributed. Use the NORMDIST function in Excel® to answer the following questions. a. What is the probability that in any given year, the return on Asset A will be greater than 11 percent? Less than 0 percent? (Round your...

Suppose the average return on Asset A is 6.8 percent and the standard deviation is 8.8...

Suppose the average return on Asset A is 6.8 percent and the standard deviation is 8.8 percent, and the average return and standard deviation on Asset B are 4 percent and 3.4 percent, respectively. Further, assume that the returns are normally distributed. Use the NORMDIST function in Excel® to answer the following questions. a. What is the probability that in any given year, the return on Asset A will be greater than 10 percent? Less than 0 percent? (Do not...

Suppose the average return on Asset A is 7.1 percent and the standard deviation is 8.3...

Suppose the average return on Asset A is 7.1 percent and the standard deviation is 8.3 percent, and the average return and standard deviation on Asset B are 4.2 percent and 3.6 percent, respectively. Further assume that the returns are normally distributed. Use the NORMDIST function in Excel® to answer the following questions. a. What is the probability that in any given year, the return on Asset A will be greater than 12 percent? Less than 0 percent? (Do not...

Suppose the average return on Asset A is 6 percent and the standard deviation is 8...

Suppose the average return on Asset A is 6 percent and the standard deviation is 8 percent, and the average return and standard deviation on Asset B are 3.2 percent and 2.6 percent, respectively. Further assume that the returns are normally distributed. Use the NORMDIST function in Excel® to answer the following questions. a. What is the probability that in any given year, the return on Asset A will be greater than 9 percent? Less than 0 percent? b. What...

For Asset A and for Asset B, compute the average annual return, variance, standard deviation, and...

For Asset A and for Asset B, compute the average annual return, variance, standard deviation, and coefficient of variation for the annual returns given below. a. Asset A: 5%, 10%, 15%, 4% b. Asset B: -6%, 20%, 2%, -5%, 10%

suppose asset a has an expected return of 10% and a standard deviation of 20% asset...

suppose asset a has an expected return of 10% and a standard deviation of 20% asset b has an expected return of 16% and a standard deviation of 40%.if the correlation between a and b is 0.6,what are the expected return and standard deviation for a prtifolio comprised of 40% asset a

Asset K has an expected return of 18 percent and a standard deviation of 33 percent....

Asset K has an expected return of 18 percent and a standard deviation of 33 percent. Asset L has an expected return of 6 percent and a standard deviation of 17 percent. The correlation between the assets is 0.42. What are the expected return and standard deviation of the minimum variance portfolio?

You own a stock with an average return of 18.7 percent and a standard deviation of...

You own a stock with an average return of 18.7 percent and a standard deviation of 19.6 percent. In any one given year, you have a 95 percent chance that you will not lose more than ________ percent nor earn more than ________ percent on this stock. A) 57.9; 20.5 B) 20.5; 38.3 C) 20.5; 57.9 D) 0.9; 57.9 E) 0.9; 38.3

A. Suppose you have an asset with an expected return of 0.12 and a standard deviation...

A. Suppose you have an asset with an expected return of 0.12 and a standard deviation of 0.18. If the riskless rate is 0.04, what combination of the risky asset and a riskless asset would give you an expected return of 0.09? What would be the standard deviation of this combination? (5 pts.) B.Find the proportion of risky and riskless assets contained in a combined portfolio whose expected return is 0.12 per year, where the riskless rate is 0.05 and...

Question