The returns on an asset are normally distributed

Assignment Help Finance Basics
Reference no: EM13526215

Suppose the returns on an asset are normally distributed. Suppose the historical average annual return for the asset was 7.5 percent and the standard deviation was 12.5 percent. What is the probability that your return on this asset will be less than -7.7 percent in a given year? Use the NORMDIST function in Excel(R) to answer this question. (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Find the Probability:

Probability % ___________

Reference no: EM13526215

Questions Cloud

Successive paradigms are incompatible : What is difference between saying that successive paradigms are incompatible and saying that they are incommensurable?
Explain the immediate product of decaying uranium-238 : The immediate product of decaying Uranium-238 is Lead-206. A sample containing a mixture of Lead-206 and Uranium-238 is made up of 18.56% Lead-206.
Compute the maximum height above the roof reached by rock : A man stands on the roof of a building of height 13.6m and throws a rock with a velocity of magnitude 31.8m/s at an angle of 31.6 degrees above the horizontal. compute the maximum height above the roof reached by the rock
Special homology and a general homology : What does it mean to describe darwins theory of inheritance as a blending theory ? What is the difference between a special homology and a general homology ?
The returns on an asset are normally distributed : The returns on an asset are normally distributed.
Explain the changes in the chromatograph : The changes in the chromatograph resulting from changes in mobile phase composition (not all observed change are easily explainable-just explain what u can, in particular the general change to longer or shorter elusion times for all analyses
Calculate how far does it travel horizontally while falling : A military helicopter on a training mission is flying horizontally at a speed of 60.0 m/s, How far does it travel horizontally while falling
Income statement balance sheet : Income Statement Balance Sheet
Explain the equilibrium partial pressure of water vapor : What is the equilibrium partial pressure of water vapor in the air at 25 degrees Celsius, and how much water remains in the bucket after equilibrium is established

Reviews

Write a Review

Finance Basics Questions & Answers

  Part 1sovereign mines is a large mining firm considering

part 1sovereign mines is a large mining firm considering the purchase of a new drilling machine. the machine will be

  Find the discount factor

At an interest rate of 12 percent, the six-year discount factor is .507. How many dollars is $.507 worth in six years if invested at 12 percent? If the PV of $139 is $125, find the discount factor?

  Explain whether or not disclosures of ppe in annual report

objective company webster limitedobjective this task requires you to prepare a report to evaluate information provided

  What is the net present value of the project z

Project Z requires an Initial (Year 0) Investment of $2,000,000; and will return $555,000 for each year of its six (6) year useful life. If the project's required rate of return is 16%, what is the Net Present Value (NPV) of the Project Z?

  A chain of appliance stores purchases inventory with a net

a chain of appliance stores purchases inventory with a net price of 500000 each day. the company purchases inventory

  What are three provisions that deter takeovers

what are three provisions (in many corporate charters) that deter takeovers? (in regards to conflicts and agency governance)

  Find the income per case

If Zebra's average expenses were $13.13 and the Distributors work on a 23 percent margin and the retailers work on a 20 percent margin;

  Which of the following dividend policy theories

Dividend changes may be used by management as a credible communication tool to signal investors about future earnings under which of the following dividend policy theories?

  Dividends on common stock are currently 4 per share and are

the following information applies to questions 4 through 8.the jones corporation has the following capital structure on

  Calculate the present value of the encabulator machine

Now you are approached by Studebaker Capital Corp., which proposes a fixed-price contract to supply raw materials at $10 million per year for 10 years.

  Prepare analysis and recommendations

You and your best friend have decided to quit your jobs, turn in your retirement, and purchase your own restaurant. In your market area there are a lot of restaurants, and you've looked at several that were available for sale.

  Determine difference in the maturity risk premiums

An shareholder in Treasury securities expects inflation to be 2.5 percent in Year1,3. 2 percent in Year 2, and 3.6 percent each year thereafter. Assume that the real risk-free rate is 2.75 percent,

Free Assignment Quote

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd