What is probability that portfolio will have positive return

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Reference no: EM132033437

Normal Distribution

Suppose a portfolio of risky assets has an expected return of 8.91% [E(r) = 0.0891] and a standard deviation of 17.62% [? = 0.1762]. For the questions below assume normal distribution. Use the “Standard Normal Distribution Table” provided in Cat Courses to answer the questions.

(a) What is the probability that the portfolio will fall by more than 7% this year?

(b) What is the probability that the portfolio will have a positive return this year?

Reference no: EM132033437

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