Find the expected value of the investment

Reference no: EM1320496

Question: Over the last fifteen years of investing, my average annual Internal Rate of Return is 11 percent, but the standard deviation is 17 percent.

I expect to invest $10,000 now, and assume my annual rate of ret ...there is more show problem

Over the last 15 years of investing, my average annual Internal Rate of Return is 11 percent, but the standard deviation is 17 percent.

I expect to invest $10,000 now, and assume my annual rate of return follows a normal distribution with mean 11 percent and standard deviation 17 percent. After 3 years,

[A] Find the Expected value of the investment?
[B] Find the probability that the investment will be worth less than the original investment?
[C] Find the probability that the investment will have more than doubled [is greater or equal to $20,0000]?

Reference no: EM1320496

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