Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Statistics and Probability Expert

Suppose that the mean of the annual return for common stocks from 2000 to 2012 was 14.37%, and the standard deviation of the annual return was 35.14%. Suppose also that during the same 12-year time span, the mean of the annual return for long-term government bonds was 0.6%, and the standard deviation was 2.1%. The distributions of annual returns for both common stocks and long-term government bonds are bell-shaped and approximately symmetric in this scenario. Assume that these distributions are distributed as normal random variables with the means and standard deviations given previously.

a. Find the probability that the return for common stocks will be greater than 16.32%.

b. Find the probability that the return for common stocks will be greater than 5.89%.

c. Find the probability that the return for common stocks will be less than 14.37%.

Statistics and Probability, Statistics

  • Category:- Statistics and Probability
  • Reference No.:- M91015038
  • Price:- $15

Guranteed 24 Hours Delivery, In Price:- $15

Have any Question?


Related Questions in Statistics and Probability

What are the uses and value of statistical significance

What are the uses and value of statistical significance testing and the p-value as demonstrated in the various analytical techniques (t-tests, ANOVA, chi-square, etc.). What's the fundamental reason we apply these techni ...

Discuss the meaning of the standard error of the estimate

Discuss the meaning of the standard error of the estimate. As you collect more data, do you expect that this standard error will increase, decrease, or stay about the same? Explain how you came to this conclusion.

You decide to further your research project by

You decide to further your research project by hypothesizing that the true average core body temperature amidst higher ambient temperature and humidity levels for the  population who do not use electric fans is  greater ...

Next time you see an elderly man check out his nose and

Next time you see an elderly man, check out his nose and ears! While most parts of the human body stop growing as we reach adulthood, studies show that noses and ears continue to grow larger throughout our lifetime. In o ...

You want to you want to estimate the mean weight of

You want to you want to estimate the mean weight of quarters in circulation. A sample of 30 quarters has a mean weight of 5.649 grams in a standard deviation of 0.066 gram. Use a single value to estimate the mean weight ...

A sample of 189 randomly selected students found that the

A sample of 189 randomly selected students found that the proportion of students planning to travel home for Thanksgiving is 0.66. What is the Standard Deviation of the sampling distribution?

For the given cash flows below assume the cash flow is the

For the given cash flows below, assume the cash flow is the same in the next 2 years. Compute the NPV for each project, and compute the incremental IRR. Compare and explain why NPV always gives the correct decision.      ...

In families with four children youre interested in the

In families with four children, you're interested in the probabilities for the different possible numbers of girls in a family. Using theoretical probability (assume girls and boys are equally likely), compile a five-col ...

Interested in learning more about its fans the marketing

Interested in learning more about its fans, the marketing office of the Arena Football League (AFL) conducted a survey at one of its games. The survey had 952 respondents, 679 males and 273 females. Out of the 952 total ...

Suppose that systolic blood pressure for 35- to

Suppose that systolic blood pressure for 35- to 44-year-olds is normally distributed with mean 125 in mm Hg and standard deviation 10 in mm Hg. What proportion of individuals will have a blood pressure reading between 12 ...

  • 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

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As