What proportion of corporations was rate of return negative

Assignment Help Business Economics
Reference no: EM13892036

An investment portfolio contains stocks of a large number of corporations. Over the last year the rates of return on these corporate stocks followed a normal distribution with mean 12.2% and standard deviation 7.2%.

a. For what proportion of these corporations was the rate of return higher than 20%?

b. For what proportion of these corporations was the rate of return negative?

c. For what proportion of these corporations was the rate of return between 5% and 15%?

Reference no: EM13892036

Questions Cloud

When the production function and the revenue are function : When the production function and the revenue are function the same in a model? (Answer is related to an assumption made about the price of the consumption good)
Compute the mean and variance of the portfolio : Shirley Johnson, portfolio manager, has asked you to analyze a newly acquired portfolio to determine its mean value and variability. The portfolio consists of 50 shares of Xylophone Music and 40 shares of Yankee Workshop. Compute the mean and varianc..
What are the mean and variance of the portfolio value : Financial Managers, Inc., buys and sells a large number of stocks routinely for the various accounts that it manages. Portfolio manager Andrea Colson has asked for your assistance in the analysis of the Johnson Fund. What are the mean and variance of..
Find the mean and variance of the random variable : A random variable X is normally distributed with a mean of 100 and a variance of 500, and a random variable Y is normally distributed with a mean of 200 and a variance of 400. The random variables have a correlation coefficient equal to -0.5. Find th..
What proportion of corporations was rate of return negative : An investment portfolio contains stocks of a large number of corporations. Over the last year the rates of return on these corporate stocks followed a normal distribution with mean 12.2% and standard deviation 7.2%. For what proportion of these corpo..
Amounts of money spent on clothing : It is known that amounts of money spent on clothing in a year by students on a particular campus follow a normal distribution with a mean of $380 and a standard deviation of $50. What is the probability that a randomly chosen student will spend less ..
Measured by forgone benefits of the next-best alternative : Opportunity cost is associated with choosing a particular decision that is measured by the forgone benefits of the next-best alternative. What example would you pose to explain this?
Let the random variable x follow a normal distribution : Let the random variable X follow a normal distribution with U(mu) = 50 and S2 = 64. Find the probability that X is less than 55. The probability is 0.2 that X is greater than what number?
Calculate your annual rate of return : Your cousin Jeremy has asked you to bankroll his proposed business painting houses in the summer. He plans to operate the business for 5 years to pay his way through college. He needs $5000 to purchase an old pickup, some ladders, a paint sprayer, an..

Reviews

Write a Review

Business Economics Questions & Answers

  By what percentage would gdp be boosted

By what percentage would GDP be boosted if the value of the services of stay-at-home spouses were included in GDP? %

  Illustrate each company share of market at beginning

Illustrate what was each company's share of market at beginning and end of month. If current trend continues Illustrate what will market shares be.

  What factors can contribute to unemployment

For this week's assignment you will create a financial plan to be prepared for economic fluctuations. What factors can contribute to unemployment? How can technology lead to greater unemployment, or is it a benefit to the economy? Can inflation cause..

  A monopolist faces the demand curve the cost function

A monopolist faces the demand curve Q = 60-P/2. The cost function is C=Q2. Find the output that maximises this monopolist’s profits. What are the prices at profits and that output? Find the elasticity of demand at the profit maximising output.

  Q1 you are a monopolist suppose there are two types of

q.1. you are a monopolist. suppose there are two types of people who buy your product groups 1 and 2. their separate

  Overall economic objective for todays corporations

Do you believe that profit (or shareholders wealth) maximization still represents the best overall economic objective for today's corporations.

  Find out the ash equilibrium outcomes to this game

Find out the ash equilibrium outcomes to this game. Illustrate which of the equilibrium outcomes is most reasonable.

  Cost when the dollar value of the rupiah fell

If a pound of U.S. pork cost 40 rupiah in Indonesia before the Asian crisis, how much did it cost when the dollar value of the rupiah fell by 80 percent?

  Companies learn from siemens reliance on bribery

What lessons should companies learn from Siemens’ reliance on bribery?

  Calculate the value of the us balance of payments

Calculate the value of the US Balance of Payments and indicate whether it is in a surplus, deficit, or equilibrium.

  About the debt ceiling

Let's talk about the debt ceiling. What have you heard about it? What does it mean? What was all the fuss about a few years ago? What about the government shutdown?

  Are coffee and tea substitutes or complements

Brazil is the world's largest coffee producer. There was a severe drought in Brazil in 2013-2014 that damaged Brazil's coffee crop. The price of coffee beans doubled during the first three months of 2014. Draw and discuss a supply and demand diagram ..

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