Question
In: Finance
Assume the returns from holding small-company stocks are normally distributed. Also assume the average annual return...
Assume the returns from holding small-company stocks are normally distributed. Also assume the average annual return for holding the small-company stocks for a period of time was 16.3 percent and the standard deviation of those stocks for the period was 34 percent. Use the NORMDIST function in Excel® to answer the following questions.
What is the approximate probability that your money will double in
value in a single year? (Do not round intermediate
calculations and enter your answer as a percent rounded to 3
decimal places, e.g., 32.161.)
Probability
%
What is the approximate probability that your money will triple in
value in a single year? (Do not round intermediate
calculations and enter your answer as a percent rounded to 8
decimal places, e.g., 32.16161616.)
Probability
%
Solutions
jeff jeffy answered 1 year agoRelated Solutions
Assume the returns from holding small-company stocks are normally distributed. Also assume the average annual return...
Assume the returns from holding small-company stocks are
normally distributed. Also assume the average annual return for
holding the small-company stocks for a period of time was 15.2
percent and the standard deviation of those stocks for the period
was 33.1 percent. Use the NORMDIST function in Excel® to answer the
following questions.
What is the approximate probability that your money will double
in value in a single year? (Do not round intermediate calculations
and enter your answer as a...
Assume the returns from holding an asset are normally distributed. Also assume the average annual return...
Assume the returns from holding an asset are normally
distributed. Also assume the average annual return for holding the
asset a period of time was 16.3 percent and the standard deviation
of this asset for the period was 33.5 percent.
What is the approximate probability that your money will double
in value in a single year? (Do not round intermediate
calculations and enter your answer as a percent rounded to 3
decimal places, e.g., 32.161.)
What is the approximate probability...
Assume that annual returns on large-company stocks are normally distributed with an average historical return of...
Assume that annual returns on large-company stocks are normally
distributed with an average historical return of 12.3% and a
standard deviation of 20.0%. What is the probability that annual
return on large-company stocks is greater than 5% and Less than
30%?
Assume that the returns from an asset are normally distributed. The average annual return for this...
Assume that the returns from an asset are normally distributed.
The average annual return for this asset over a specific period was
14.7 percent and the standard deviation of those returns in this
period was 43.59 percent.
a. What is the approximate probability that your money will
double in value in a single year? (Do not round intermediate
calculations and enter your answer as a percent rounded to 2
decimal places, e.g., 32.16.)
b. What about triple in value? (Do...
Assume that the returns from an asset are normally distributed. The average annual return for this...
Assume that the returns from an asset are normally distributed.
The average annual return for this asset over a specific period was
17.2 percent and the standard deviation of those returns in this
period was 43.53 percent.
a.
What is the approximate probability that your money will double
in value in a single year? (Do not round intermediate
calculations and enter your answer as a percent rounded to 2
decimal places, e.g., 32.16.)
b.
What about triple in value? (Do...
Suppose the returns on an asset are normally distributed. The historical average annual return for the...
Suppose the returns on an asset are normally distributed. The
historical average annual return for the asset was 7.3 percent and
the standard deviation was 8.4 percent. What is the probability
that your return on this asset will be less than –4.5 percent in a
given year? Use the NORMDIST function in Excel® to answer this
question. (Do not round intermediate calculations. Enter your
answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Probability 8.0 % What range...
Suppose the returns on an asset are normally distributed. The historical average annual return for the...
Suppose the returns on an asset are normally distributed. The
historical average annual return for the asset was 6.7 percent and
the standard deviation was 12.6 percent.
What range of returns would you expect to see 95 percent of the
time? (Enter your answers for the range from lowest to
highest. A negative answer should be indicated by a minus
sign. Do not round intermediate calculations.
Enter your answers as a percent rounded to 2 decimal places, e.g.,
32.16.)...
Suppose the returns on an asset are normally distributed. The historical average annual return for the...
Suppose the returns on an asset are normally distributed. The
historical average annual return for the asset was 5.9 percent and
the standard deviation was 10.5 percent. a. What is the probability
that your return on this asset will be less than –7.3 percent in a
given year? Use the NORMDIST function in Excel® to answer this
question. (Do not round intermediate calculations and enter your
answer as a percent rounded to 2 decimal places, e.g., 32.16.) b.
What range...
Suppose the returns on long-term corporate bonds are normally distributed. The average annual return for long-term...
Suppose the returns on long-term corporate bonds are normally
distributed. The average annual return for long-term corporate
bonds from 1926 to 2007 was 6.7 percent and the standard deviation
of those bonds for that period was 9.4 percent.
(a)
Based on this historical record, what is the approximate
probability that your return on these bonds will be less than -3.6
percent in a given year? (Do not round intermediate
calculations.)
(Click to
select)14.21%12.98%13.66%14.34%27.32%
(b)
What range of returns would...
The annual returns from a particular mutual fund are believed to be normally distributed. The following...
The annual returns from a particular mutual fund are believed to
be normally distributed. The following table lists the annual
returns for this fund over a 20-year period.
Year
Return (%)
Year
Return (%)
1
6.2
11
5.4
2
11.3
12
26.0
3
16.1
13
13.5
4
16.9
14
24.2
5
9.8
15
–1.5
6
18.3
16
1.4
7
11.2
17
15.7
8
–12.1
18
11.8
9
19.2
19
1.9
10
17.6
20
17.8
a) Determine the mean and standard...
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