17. If the average return is 16 percent and the standard deviation is 18 percent, what...
17. If the average return is 16 percent and the standard deviation is 18 percent, what is the probability of getting a return greater than 25 percent? Group of answer choices a. 0% b. 19.15% c. 25.80% d. 30.85%
Homework Answers
Mean return= 16%
Standard deviation =18%
Z score = (25 - mean) /SD
= (25 - 16) / 18
= 0.5
From the z table the percentile corresponding to 0.5 is 0.19146 or 19.146%
So required probability = 100% - (50% + 19.146%)
=30.85% (Answer)
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