Problemassume that the returns from an asset are normally, Ask an Expert

Accounting

Problem:

Assume that the returns from an asset are normally distributed. The average annual return for this asset over a specific period was 17.2 percent and the standard deviation of those stocks in this period was 43.53 percent.

Requirement:

Question 1: What is the approximate probability that your money will double in value in a single year?

Question 2: What about triple in value?

Note: Please describe comprehensively and provide step by step solution.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91172875

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