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Homework answers / question archive / Normal probability distribution Assuming that the rates of return associated with a given asset investment are normally distributed; that the expected return, 18
Normal probability distribution Assuming that the rates of return associated with a given asset investment are normally distributed; that the expected return, 18.6%; and that the coefficient of variation, CV, is 0.82, answer the following questions:
a. Find the standard deviation of returns,
b. Calculate the range of expected return outcomes associated with the following probabilities of occurrence: (1) 68%, (2) 95%, (3) 99%.
b. (1) The lowest possible expected return associated with the 68% probability of occurrence is. (Round to two decimal places.)
The highest possible expected return associated with the 68% probability of occurrence is. (Round to two decimal places.)
(2) The lowest possible expected return associated with the 95% probability of occurrence is. (Round to two decimal places.)
The highest possible expected return associated with the 95% probability of occurrence is. (Round to two decimal places.)
(3) The lowest possible expected return associated with the 99% probability of occurrence is. (Round to two decimal places.)
The highest possible expected return associated with the 99% probability of occurrence is. (Round to two decimal places.)