Finance Excel NORMDIST question

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20. value: 10.00 points Suppose the average return on Asset A is 6.4 percent and the standard deviation is 7.6 percent and the average return and standard deviation on Asset B are 3.5 percent and 3.0 percent, respectively. Further assume that the returns are normally distributed. Use the NORMDIST function in ExcelA?® to answer the following questions. a. What is the probability that in any given year, the return on Asset A will be greater than 9 percent? Less than 0 percent? (Round your answers to 2 decimal places. (e.g., 32.16)) Greater than 9 percent % Less than 0 percent % b. What is the probability that in any given year, the return on Asset B will be greater than 9 percent? Less than 0 percent? (Round your answers to 2 decimal places. (e.g., 32.16)) Greater than 9 percent % Less than 0 percent % c-1 In 1979, the return on Asset A was ?4.31 percent. How likely is it that such a low return will recur at some point in the future? (Round your answer to 2 decimal places. (e.g., 32.16)) Probability % c-2 Asset B had a return of 10.20 percent in this same year. How likely is it that such a high return on T -bills will recur at some point in the future? (Round your answer to 2 decimal places. (e.g., 32.16)) Probability % rev: 12_06_2012 check my workreferencesebook & resources Jan 19 2014 10:47 PM

 

Solution ID:609202 | This paper was updated on 26-Nov-2015

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