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The Wall Street Journal reported that long term Treasury bonds had a mean return of 24.03%...

The Wall Street Journal reported that long term Treasury bonds had a mean return of 24.03% in 2008. Assume that the returns for the long term Treasury bonds were distributed as a normal random variable, with a mean of 24.03 and a standard deviation of 10. If you select an individual Treasury bond from this population, what is the probability that it would have a return of...

a. less than 0 (a loss)?
b. between 10 and 20 ?
c. greater than 10 ?

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Given that:

The Wall Street Journal reported that long term Treasury bonds had a mean return of 24.03% in 2008. Assume that the returns for the long term Treasury bonds were distributed as a normal random variable, with a mean of 24.03 and a standard deviation of 10.

Let X is return then X follows normal with mean = 24.03 and SD=10

a) less than 0 (a loss)?

b) between 10 and 20 ?


c) greater than 10 ?

orchestra answered 1 year ago
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