### Find the area under the normal curve

Assignment Help Finance Basics
##### Reference no: EM131456871

1. You are examining the record of an investment newsletter writer who claims a 70 percent success rate in making investment recommendations that are profitable over one-year time horizon. You are independent and the newsletter writer's skill is as claimed, what is the mendations. Four of those recommendations were profitable. If all the recommendations are independent and the newsletter writer‘s skills is as claimed, what is the probability of observing four or fewer profitable recommendations out of seven in total?

2. State the approximate probability that a normal random variable will fall within the following intervals:
A. Mean plus or minus one standard deviation.
B. Mean plus or minus two standard deviations.
C. Mean plus or minus three standard deviations.

3. Find the area under the normal curve up to z = 0.36; that is, find P(Z ≤  0.36). Interpret this value.

4. Basing your estimate of future-Period monthly return parameters on the sample Meat and standard deviation for the period January 1994 to December 1996, construct a 90 percent confidence interval for the monthly return on a large-cap blend fund. Assume fund returns are normally distributed.

5. Basing your estimate of future-period monthly return parameter on the sample mean and standard deviation for the period January 1994 to December 1996, calculate the probability that a large-cap growth fund will earn a monthly return of 0 paean or less. Assume fund returns are normally distributed.

6. The basic calculation for volatility (denoted 0) as used in option pricing is the annualized standard deviation of continuously compounded daily returns. Calculate volatility for Dollar General Corporation (NYSE: DG) based on its closing prices for two weeks, given in the table below. (Annualize based on 250 days in a year.)

Dollar General Corporation Daily Closing Stock Price

 Date Closing Price (\$) 27 January- 2003 10.68 28 January. 2003 10.87 29 January 2003 11.00 30 January 2003 10.95 31 January 2003 11.26 3 February 2003 11.31 4 February 2003 11.23 5 February 2003 10.91 6 February 2003 10.80 7 February 2003 10.47

Verified Expert

The assignment contains questions based on statistical probability. The concept of z value has been used. Moreover, the normal distribution is the basic concept used in the assignment. The bionamial distribution for finding probability is also used which uses the combination and the success rate. The standard deviation formula in the excel is also used.

#### Calculate the expected utility for both investors

FINC3017 Investments and Portfolio Management - Calculate the optimal portfolio for both investors that consists of the following five industries: MATL, CONS, TELE, UTIL and

#### Conduct stock valuations employing statistic models

Conduct stock valuations employing statistic models covered in the class. For example, Single-index market model, and discounted dividend model (DDM) - characteristics of th

#### Calculate a 3-day moving average

BADM 418 - Financial Futures and Options - Spring 2017 - Calculate a 3-day moving average, 3-day MA, for the settlement prices in the column next to the settlement prices.

#### Complete a loan servicing calculation

Complete a loan servicing calculation (NSR) by completing the form overleaf. Remember this NSR calculation is based on 2 security properties - Complete the lender's applicat

#### Examine the effect of regulatory issues

FIN 961: Derivatives - Develop comprehensive theoretical, industrial and technical knowledge of financial derivatives offered in global markets such as options, futures, for

#### Calculate marginal tax rate and taxable income

Salary \$22,000.00 Corporate Bonds \$2,000.00 Muni Bonds \$10,000.00 Ordinary Dividends \$3,000.00 Qualified Dividends \$3,000.00 ST Capital Gain \$150.00 LT Capital Loss \$1,500.0

#### Calculate marginal tax rate and taxable income

Salary \$22,000.00 Corporate Bonds \$2,000.00 Muni Bonds \$10,000.00 Ordinary Dividends \$3,000.00 Qualified Dividends \$3,000.00 ST Capital Gain \$150.00 LT Capital Loss \$1,500.0

#### Calculate marginal tax rate and taxable income

Salary \$22,000.00 Corporate Bonds \$2,000.00 Muni Bonds \$10,000.00 Ordinary Dividends \$3,000.00 Qualified Dividends \$3,000.00 ST Capital Gain \$150.00 LT Capital Loss \$1,500.0

### Reviews

#### inf1456871

4/22/2017 6:25:21 AM

Please provide solutions for #5, 8,9,11,12 and 16 Exceptionally fulfilled ! Got the solution before due time and extremely well clarification written that I can comprehend everything. Got 100% on my review. I will positively utilize it again :)

### Write a Review

#### Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!