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A security with normally distributed returns has an annual expected return of 18% and standard deviation of 23%. The probability of getting a return between -28% and 64% in any one year is _____.

Respuesta :

Answer:

$95.45%

Explanation:

The computation of the probability of getting a return between -28% and 64% in any one year is shown below:-

Particulars                                                      Percentage

Total probability                                              100%

Less:

Probability that return will be lower

than -28%                                                        2.28%

1- (NORMDIST (-28%,18%,23%,TRUE)

Probability that return will be More

than 64%                                                        2.28%

(NORMDIST (64%,18%,23%,TRUE)

Probability of getting a return between

-28% and 64%                                               $95.45%

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