Based on the research of ibbotson associates a chicago, Ask an Expert

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Based on the research of Ibbotson Associates, a Chicago investment firm, and Prof. Jeremy Siegel of the Wharton School of the University of Pennsylvania, the average return on large-company stocks since 1920 has been 10.5% per year and the standard deviation has been 4.75%.

Assuming a normal distribution for stock returns (and that the trend will continue this year), what is the probability that a largecompany stock you've just bought will make in 1 year at least 12%? Will lose money? Will make at least 5%?

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Statistics and Probability, Statistics

Category:- Statistics and Probability
Reference No.:- M92180840

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