Suppose that returns for firm x are normally distributed, Ask an Expert

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Suppose that returns for Firm X are normally distributed with a mean of 12% and a standard deviation of 10%. Assuming that this distribution is maintained into the future, respond to the following questions.

A. What is the probability of occurrence of a return less than 2 %? Make a sketch showing your answer as an area under the normal curve.

B. What is the probability of occurrence of a return greater than 32%? Make a sketch showing your answer as an area under the normal curve.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92258603

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