Question
In: Statistics and Probability
Historically, the one-year returns follow approximately the normal distribution. The one-year return for the S&P 500...
Historically, the one-year returns follow approximately the normal distribution. The one-year return for the S&P 500 was +27% (that is, 0.27) and its standard deviation is 20% (that is, 0.2). What is the probability that a stock in the S&P 500 gained 30% or more last year?
(a) 0.0668 (i.e., 6.68%)
(b) 0.4404 (i.e., 44.04%)
(c) 0.5596 (i.e., 55.96%)
(d) 0.9332 (i.e., 93.32%)
What is the probability that a stock in the S&P 500 lost 10% or more last year?
(a) 0.1814 (i.e., 18.14%)
(b) 0.0082 (i.e., 0.82%)
(c) 0.0322 (i.e., 3.22%)
(d) 0.0743 (i.e., 7.43%)
Solutions
orchestra answered 1 year agoRelated Solutions
Historically the S&P 500 Stock Index has returned about 8% a year but returns are very...
Historically the S&P
500 Stock Index has
returned about 8% a year but returns are very
uneven as recent experience has reminded us - the INDEX
declined by more than 50% from its peak in
2007 and took 7 years to attain
that peak level again. This year (2019) the S & P 500
Index has gained about 10% through today’s date after
declining almost 10% for last year( 2018). It has since recovered.
In contrast a typical Money Market...
Given the monthly returns that follow: Month Portfolio Return S&P 500 Return Jan. 5.5.% 5.8% Feb....
Given the monthly returns that follow:
Month
Portfolio Return
S&P 500 Return
Jan.
5.5.%
5.8%
Feb.
-2.4
-3.3
March
-1.8
-1.5
April
2.7
2.0
May
0.7
-0.1
June
-0.9
-0.4
July
0.1
0.5
August
1.5
2.0
September
-0.8
-0.6
October
-3.2
-3.7
November
2.4
1.6
December
0.6
0.1
Calculate R2:
Alpha: %
Beta:
Average return difference (with signs): %
Average return difference (without signs) %
Historically the S&P 500Index has returned about 8% a year but returns are very uneven as...
Historically the S&P 500Index has returned about 8% a year
but returns are very uneven as recent experience has reminded us -
the INDEX declined by more than 50% from its peak in2007 and took 7
years to attain that peak level again. Last year the S & P 500
Index gained over 30% but this year it declined by over 30% in
March alone. In contrast a typical Money Market Fund has returned
about 2% a year with minimal...
6. The distribution of scores on the SAT is approximately normal with a mean of 500...
6. The distribution of scores on the
SAT is approximately normal with a mean of 500 and a standard
deviation of 100. For the population of students who have taken the
SAT…
A. What
percentage have SAT scores greater than 550?
B. What is the minimum SAT score
needed to be in the highest 10% of the population?
C. If the state college only accepts
students from the top 60% of the SAT distribution, what is the
minimum SAT...
Risk and Return 1. Calculate monthly returns for Darden Restaurants and the S&P 500. Be sure...
Risk and
Return
1. Calculate monthly returns
for Darden Restaurants and the S&P 500. Be sure to include the
dividends for Darden in the return. Show All excel formulas.
Darden (DRI)
S&P 500
Month
Price
Dividend
Price
6/1/16
59.11
2098.86
DRI Return
SP Return
DRI- Ave
S&P - Ave
(DRI-Ave)x(S&P-Ave)
7/1/16
57.446472
0.56
2173.600098
8/1/16
58.043533
2170.949951
9/1/16
57.742203
2168.27002
10/1/16
61.009743
0.56
2126.149902
11/1/16
69.65522
2198.810059
12/1/16
69.10405
2238.830078
1/1/17
69.636215
0.56
2278.870117
2/1/17
71.520325
2363.639893
3/1/17
80.129959
2362.719971...
Risk and Return 1. Calculate monthly returns for Darden Restaurants and the S&P 500. Be sure...
Risk and
Return
1. Calculate monthly returns
for Darden Restaurants and the S&P 500. Be sure to include the
dividends for Darden in the return. Please show equations in
Excel.
Darden (DRI)
S&P 500
Month
Price
Dividend
Price
6/1/16
59.11
2098.86
DRI Return
SP Return
DRI- Ave
S&P - Ave
(DRI-Ave)x(S&P-Ave)
7/1/16
57.446472
0.56
2173.600098
8/1/16
58.043533
2170.949951
9/1/16
57.742203
2168.27002
10/1/16
61.009743
0.56
2126.149902
11/1/16
69.65522
2198.810059
12/1/16
69.10405
2238.830078
1/1/17
69.636215
0.56
2278.870117
2/1/17
71.520325
2363.639893
3/1/17
80.129959...
What is the average monthly return and standard deviation of returns for (i) S&P 500: Date...
What is the average monthly return and standard deviation of
returns for
(i) S&P 500:
Date
Adj Close
8/1/2015
1972.18
9/1/2015
1920.03
########
2079.36
########
2080.41
########
2043.94
1/1/2016
1940.24
2/1/2016
1932.23
3/1/2016
2059.74
4/1/2016
2065.3
5/1/2016
2096.95
6/1/2016
2098.86
7/1/2016
2173.6
8/1/2016
2170.95
9/1/2016
2168.27
########
2126.15
########
2198.81
########
2238.83
1/1/2017
2278.87
2/1/2017
2363.64
3/1/2017
2362.72
4/1/2017
2384.2
5/1/2017
2411.8
6/1/2017
2423.41
7/1/2017
2470.3
8/1/2017
2471.65
9/1/2017
2519.36
########
2575.26
########
2584.84
########
2673.61
1/1/2018
2823.81
2/1/2018
2713.83...
The following data is provided for the S&P 500 Index: Year Total Return Year Total Return...
The following data is provided for the S&P 500 Index:
Year
Total Return
Year
Total Return
1988
16.81%
1998
28.58%
1989
31.49%
1999
21.04%
1990
-3.17%
2000
-9.11%
1991
30.55%
2001
-11.88%
1992
7.67%
2002
-22.10%
1993
9.99%
2003
28.70%
1994
1.31%
2004
10.87%
1995
37.43%
2005
4.91%
1996
23.07%
2006
15.80%
1997
33.36%
2007
5.49%
Refer to the information above. Calculate the 20-year arithmetic
average annual rate of return on the S&P 500 Index.
Question 22 options:
13.04%
11.81%...
The weights of boxes of a certain brand of pasta follow an approximately normal distribution with...
The weights of boxes of a certain brand of pasta follow an
approximately normal distribution with a mean of 16 ounces and a
standard deviation of 0.05 ounces.
What percentage of boxes have weights that are more than 1
standard deviation above the mean? (Use the Empirical Rule 68, 95,
99.7)
The heights of women follow an approximately normal distribution with a mean of 65 inches and...
The heights of women follow an approximately normal distribution
with a mean of 65 inches and a standard deviation of 3.5 inches.
Use this information and a z-table to answer the following
questions.
A. Bianca is 60 inches tall. Find the z-score for Bianca's
height. Round your z-score to 2 decimal places.
B. Find the proportion of the population Bianca is taller than.
Round your proportion to 4 decimal places.
C. What proportion of women are between 61.5 inches and...
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