Question
In: Finance
PLEASE SHOW WORK Stock B has an expected return of 10% and a standard deviation of...
PLEASE SHOW WORK
Stock B has an expected return of 10% and a standard deviation of 5%. What is the probability of earning a return between 10% and 15%? About 34%
Solutions
Expert Solution
For calculating probability we need to get z values
z = (Return - Expected Return)/Standard Deviation
z lies between ( (10%-10%)/5%, (15%-10%)/5%) so 0<=z<=1
Using following Normal Distribution table we het Probability =
0.3413 for z = 1
Hence Probability is 34.13%
Please Discuss in case of Doubt
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jeff jeffy answered 1 year agoRelated Solutions
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