Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Statistics and Probability Expert

describe probability using normal distribution.

As-per to Investment Digest (‘Diversification and the Risk or Reward Relationship', Winter 1994, 1-3) the mean of the annual return for common stocks from 1926 to 1992 was 15.4%, as well as the standard deviation of the annual return was 24.5%. During the similar 67-year time span the mean of the annual return for long-term government bonds was 5.5% as well as the standard deviation was 6.0%. The article entitlements that the distributions of annual returns for both common stocks also long-term government bonds are bell-shaped and approximately symmetric. Presume that these distributions are distributed as normal random variables with the means as well as standard deviations given previously.

1. What the probability that the return for common stocks will be greater than 0%.

2. What the probability that the return for common stocks will be less than 20%.

Statistics and Probability, Statistics

  • Category:- Statistics and Probability
  • Reference No.:- M920296

Have any Question? 


Related Questions in Statistics and Probability

It is noted that research falls into four basic categories

It is noted that research falls into four basic categories, depending on whether the goal is to describe patterns of behavior, thought, or emotion (descriptive research); to examine the relationship among naturally occur ...

Statistics assignmentquestions address all of the following

Statistics Assignment Questions: Address all of the following questions in a brief but thorough manner. • What are the most common measures of central tendency? Include brief definitions for the common measures of centra ...

Consumer reports provided extensive testing and ratings for

Consumer Reports provided extensive testing and ratings for more than 100 HDTVs. An overall score, based primarily on picture quality, was developed for each model. In general, a higher overall score indicates better per ...

Assignment quantitative methodsquestion 1 a large shipping

ASSIGNMENT: QUANTITATIVE METHODS QUESTION 1: A large shipping company recorded the tonnage shipped weekly across the pacific for 50 weeks. The data is presented in the table below. 530 492 462 379 487 523 600 618 548 431 ...

The mathematics faculty at a college consists of 6

The mathematics faculty at a college consists of 6 professors, 9 associate professors, 7 assistant professors, and 12 instructors. If one faculty member is randomly selected, find the probability of choosing a professor ...

Throughout the early 1800s the influence of

Throughout the early 1800's the influence of industrialization and the repeated subjugation of Native Indians and slaves caused people to reflect on their role in society and attempt to reform elements of their daily liv ...

Suppose that the probability that a new medication will

Suppose that the probability that a new medication will cause a bad side effect is 0.03. If this medication is given to 150 people, what is the probability that exactly three of them will experience a bad side effect? Pl ...

Three experiments investigating the relation between need

Three experiments investigating the relation between need for cognitive closure and persuasion were performed. Part of the study involved administering a "need for closure scale" to a group of students enrolled in an int ...

The course text notes that tensions and differences in the

The course text notes that tensions and differences in the 1770s led to the American Revolution that eventually produced independence for the United States from Great Britain. When the War for American Independence broke ...

In a recent poll of 760 homeowners in the united states one

In a recent poll of 760 homeowners in the United States, one in five homeowners reports having a home equity loan that he or she is currently paying off. Using a confidence coefficient of 0.90, derive an interval estimat ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen