Suppose the returns on long-term government bonds are normally distributed. Assume long-term government bonds have a mean return of 6 percent and a standard deviation of 9.6 percent.
What is the probability that your return on these bonds will be
less than −13.2 percent in a given year? Use the NORMDIST function
in Excel® to answer this question.
Probability %
What range of returns would you expect to see 95 percent of the time?
Expected range of returns % to %
What range would you expect to see 99 percent of the time?
Expected range of returns % to %
Suppose the returns on long-term government bonds are normally distributed. Assume long-term government bonds have a...
Suppose the returns on long-term government bonds are normally distributed. Assume long-term government bonds have a mean return of 6.0 percent and a standard deviation of 9.9 percent. a. What is the approximate probability that your return on these bonds will be less than -3.9 percent in a given year? Use the NORMDIST function in Excel® to answer this question. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b....
Suppose the returns on long-term government bonds are normally distributed. Assume long-term government bonds have a mean return of 6.0 percent and a standard deviation of 9.9 percent. a. What is the approximate probability that your return on these bonds will be less than -3.9 percent in a given year? Use the NORMDIST function in Excel® to answer this question. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b.What...
Suppose the returns on long-term government bonds are normally distributed. Assume long-term government bonds have a mean return of 5.3 percent and a standard deviation of 8.8 percent. What is the probability that your return on these bonds will be less than −3.5 percent in a given year? Use the NORMDIST function in Excel® to answer this question. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Probability %...
Suppose the returns on long-term government bonds are normally distributed. Assume long-term government bonds have a mean return of 6.0 percent and a standard deviation of 9.9 percent. a. What is the approximate probability that your return on these bonds will be less than -3.9 percent in a given year? Use the NORMDIST function in Excel to answer this question. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b....
Suppose the returns on long-term government bonds are normally distributed. Assume long-term government bonds have a mean return of 6.1 percent and a standard deviation of 9.7 percent. Requirement 1: What is the approximate probability that your return on these bonds will be less than -13.3 percent in a given year? (Do not include the percent sign (%). Round your answer to 2 decimal places (e.g., 32.16).) Probability 7% Requirement 2: What range of returns would you expect to see...
Suppose the returns on long-term government bonds are normally distributed. Assume long-term government bonds have a mean return of 5.7 percent and a standarddeviation of 9.4 percent.Requirement 1:What is the approximate probability that your return on these bonds will be less than ?3.7 percent in a given year? (Do not include the percent sign (%). Round youranswer to 2 decimal places (e.g., 32.16).)1-Probability= ? %Requirement 2:What range of returns would you expect to see 68 percent of the time? (Do...
Suppose the returns on long-term corporate bonds are normally distributed. The average annual return for long-term corporate bonds from 1926 to 2007 was 5.8 percent and the standard deviation of those bonds for that period was 8.2 percent. Based on this historical record, what is the approximate probability that your return on these bonds will be less than -3.5 percent in a given year? (Do not round intermediate calculations.) What range of returns would you expect to see 95 percent...
Suppose the returns on an asset are normally distributed. The historical average annual return for the asset was 6.3 percent and the standard deviation was 16.3 percent. a. What is the probability that your return on this asset will be less than –3.7 percent in a given year? Use the NORMDIST function in Excel® to answer this question. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What range...
Problem 10-24 Using Return Distributions Assume the returns on an asset are normally distributed. Suppose the historical average annual return for the asset was 7.3 percent and the standard deviation was 8.4 percent. What is the probability that your return on this asset will be less than -4.5 percent in a given year? Use the NORMDIST function in Excel to answer this question. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places,...
Suppose the returns on long-term corporate bonds and T-bills are normally distributed. Assume for a certain time period, long-term corporate bonds had an average return of 6.4% and a standard deviation of 8.3%. For the same period, T-bills had an average return of 3.4% and a standard deviation of 3.1%. Use the NORMDIST function in Excel® to answer the following questions: a. What is the probability that in any given year, the return on long-term corporate bonds will be greater...