What is the probability of occurrence of return

Assignment Help Financial Management

Reference no: EM131449863

Suppose that returns for Firm X are normally distributed with a mean of 12% and a standard deviation of 10%. Assuming that this distribution is maintained into the future, respond to the following questions.

A. What is the probability of occurrence of a return less than 2 %? Make a sketch showing your answer as an area under the normal curve.

B. What is the probability of occurrence of a return greater than 32%? Make a sketch showing your answer as an area under the normal curve.

Reference no: EM131449863

Questions Cloud

Computer consulting business : Emelio and Charita are married taxpayers with 2 dependent children. Emelio starts a computer consulting business in 2012. Charita works as a real estate broker.

What is your estimate of stocks current price : A company currently pays a dividend of $1.75 per share (D0 = $1.75). What is your estimate of the stock's current price?

What was average growth rate in dividends over the period : what was the average growth rate in dividends over the period?

What is the required rate of return on stock with beta : What is the required rate of return on a stock with a beta of 0.8 if the risk-free rate is 2.2% and the expected return on the market is 9.9%?

What is the probability of occurrence of return : Firm X are normally distributed with a mean of 12% and a standard deviation of 10%. What is the probability of occurrence of a return less than 2 %?

What is the value of company that had free cash flow : What is the value of a company that had free cash flow of $150 million in the most recent year if the free cash flow is expected to grow by 4% per year.

What is the enterprise value of a firm if the free cash flow : What is the enterprise value of a firm if the free cash flow for the coming year is $455 million and it is expected to grow at a constant rate of 3% per year?

Based on the exchange rate data sheets : Based on the exchange rate data sheets.

Assume inventory shrinkage in each year : Profound Products, Inc., is planning to market a new banana peeler. Assume inventory shrinkage in each year is equal to 2% of the previous year's inventory.

User Account

All Pages