The continuously compounded annual return on a stock is normally distributed with a mean of 18% and standard deviation of 20%. With 95.44% confidence, we should expect its actual return in any particular year to be between which pair of values? Hint: Refer to Figure 5.3.
−22.0% and 58.0%
−12.0% and 58.0%
−42.0% and 78.0%
−2.0% and 38.0%
The continuously compounded annual return on a stock is normally distributed with a mean of 18%...
Problem 5-10 The continuously compounded annual return on a stock is normally distributed with a mean of 14% and standard deviation of 30% With 95.44% confidence, we should expect its actual return in any particular year to be between which pair of values? Hint Refer to Figure 53 0-46.0% and 74.0% 0-36.0% and 74.0% 0-76.0% and 104.0% 0-16.0% and 44,0%
2 The annual return on a stock is normally distributed with a mean of 10% and standard ation of 20%, with 95% confidence, we should expect its actual return in any par- devi ticular year to be between which pair of values? (Hint: Look again at page 12 of Lecture Note 1.) a.-5% and 35% b.-30% and 50% c.-45% and 75% d.-50% and 80% The margin requirement on a stock purchase is 20%. You fully use the margin allowed to...
6. Suppose that continuously compounded returns are normally distributed. A stock currently trades for $100, with an expected return of 12% and standard deviation of 20%. What is the probability distribution for the rate of return (with continuous compounding) to be earned over a one-year period?
Suppose that the monthly return of stock A is approximately normally distributed with mean µ and standard deviation σ, where µ and σ are two unknown parameters. We want to learn more about the population mean µ, so we collect the monthly returns of stock A in nine randomly selected months. The returns are given (in percentage) as follows: 0.3, 1.3, 1.5, −0.6, −0.2, 0.8, 0.8, 0.9, −1.2 Answer the following questions about the confidence intervals for µ. (a) Construct...
A portfolio's annual returns are normally distributed with a mean of 9 % and a standard deviation of 24 %. Over the past 5 years, you observe an average annual return of -1 %. What is the probability of observing an average annual return over 5 years of -1 % or less? I need it to be done on the excel. Please show the steps.
Solve the problem. Annual precipitation in a certain city is normally distributed with a mean of 99 inches, and a standard deviation of 18 in. Find the probability that the mean annual precipitation during 35 randomly picked years will be less than 101.8 in.? Group of answer choices 0.8212 0.3212 0.9203 0.6788 0.1788
College students annual earnings are normally distributed with standard deviation σ-$800. If the mean earning for gro construct a 95% confidence interval estimate of the mean annual earnings for all college students. 10. up of 64 students is $4000,
The annual salary for one particular occupation is normally distributed, with a mean of about $133 comma 000 and a standard deviation of about $15 comma 000. Random samples of 28 are drawn from this population, and the mean of each sample is determined. Find the mean and standard deviation of the sampling distribution of these sample means. Then, sketch a graph of the sampling distribution. The mean is mu Subscript x over bar equals nothing, and the standard deviation...
(20 points) Suppose that the return of stock A is normally distributed with mean 4% and standard deviation 5%, the return of stock B is normally distributed with mean 8% and standard deviation 10%, and the covariance between the returns of stock A and stock B is -30(%)2. Now you have an endowment of 1 dollar, and you decide to invset w dollar in stock A and 1 - w dollar in stock B. Let rp be the overall return...
(20 points) Suppose that the return of stock A is normally distributed with mean 4% and standard deviation 5%, the return of stock B is normally distributed with mean 8% and standard deviation 10%, and the covariance between the returns of stock A and stock B is -30(%)2. Now you have an endowment of 1 dollar, and you decide to İnvset w dollar in stock A and 1 - w dollar in stock B. Let rp be the overall return...