Question

Suppose the returns on large-company stocks are normally distributed. Also suppose large-company stocks had an average return of 12.0% and a standard deviation of 19.9%. Use the NORMDIST function in Excel® to answer the following question: Determine the probability that in any given year you will lose money by investing in large-company common stock.. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Answer 1

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STATS - Microsoft Excel (Product Activation Failed) File Home Insert Page Layout Formulas Data Review View Add-Ins E AutoSum %Cut A* Wrap Text General Calibri 11 ECopy Fill Merge & Center Insert Delete Format Paste +.0 .000 0C Conditional Format Cell Sort & Find & Filter Select % BIU Format Painter Clear Formatting as Table Styles Editing Clipboard Font Alignment Number Styles Cells fix Al23 AB AC AD AE AF AG AH AI AJ AK AL 13 14 0 15 MEAN 12 16 STANDARD DEVIATION 19.9 17 excel function 18 0.27324933 NORM.DIST(0,12,19.9,1) The probability of losing money in any given year in large company stocks 19 [NORM.DIST(AF14,AF15,AF16,1)] 20 27.32% 21 ANSWER 22 23 24 25 26 27 28 Sheet2 TREND freq MATRIX INTERVAL, NORMAL HYPOTHESIS SQC GP Sheet3 Sheet5 E 150% COV LPP prob TIME SERIES corr REGRESSION MATHS range CAMERA Rea (-) erences WW 07:20 ENG 12-08-2019