Assume the returns from holding small-company stocks are, Ask an Expert

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Assume the returns from holding small-company stocks are normally distributed. Also assume the average annual return for holding the small-company stocks for a period of time was 16.3 percent and the standard deviation of those stocks for the period was 34 percent. Use the NORMDIST function in Excel® to answer the following questions. What is the approximate probability that your money will double in value in a single year?

Probability______%

What is the approximate probability that your money will triple in value in a single year?

Probability_____%

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Financial Management, Finance

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