Returns on large-company stocks are normally distributed

Assignment Help Financial Management

Reference no: EM13954805

Suppose the returns on large-company stocks are normally distributed. Also suppose large-company stocks had an average return of 11.8% and a standard deviation of 20.3%. Use the NORMDIST function in Excel® to answer the following question:

Required:

Determine the probability that in any given year you will lose money by investing in common stock. (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

Probability %

Reference no: EM13954805

Questions Cloud

What is the probability that your money will triple in value : 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 16.5 percent and the standard deviation of those stocks for the period ..

What sampling method would you recommend, and why : Construct a 98 percent confidence interval for the true proportion of ranch style homes

Development and implementation of epossystem : Prepare a report for the management board of RTY plc on the development and implementation of an EPOSsystem.

Straight fi nancial analysis of the investment alternatives : Strategically, what must Pan-Europa do to keep from becoming the victim of a hostile takeover? What rows/ categories in Exhibit 2 will thus become critically important this coming year? What should Pan-Europa do now that they have won the price wa..

Returns on large-company stocks are normally distributed : Suppose the returns on large-company stocks are normally distributed. Also suppose large-company stocks had an average return of 11.8% and a standard deviation of 20.3%. Determine the probability that in any given year you will lose money by investin..

Illegal acts regarding computer networks and information : In general, forensics is the use of scientific techniques and technology in establishing the facts of criminal and civil legal matters. Computer forensics is the logical extension of this practice applied to illegal acts regarding computer networks a..

How many states does the particle have in a depth : Families of finite square wells. A particle of mass m has N quantized energy levels in a one-dimensional square well of depth V_0 and width L. N is more than 10- Approximately how many bound states does the particle have in a well of the same depth..

What is symbolic about these colors : A parking space with a handicap symbol in the middle is something we see every day. But this Handicap parking spot has this written in it: "Every 48 seconds a drunk driver makes another person eligible to park here." written direction under the handi..

Demonstrate the procedures for spill cleaning : Demonstrate the procedures for donning personal protective equipment (PPE) in sequence - Demonstrate the procedures for spill cleaning.

User Account

All Pages