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In the last quarter of​ 2007, a group of 64 mutual funds had a mean return...

In the last quarter of​ 2007, a group of 64 mutual funds had a mean return of 1.8​% with a standard deviation of 4.5​%. Consider the Normal model ​N(0.018​,0.045​) for the returns of these mutual funds.

​a) What value represents the 40th percentile of these​ returns?

​b) What value represents the 99th​ percentile?

​c) What's the​ IQR, or interquartile​ range, of the quarterly returns for this group of​ funds?

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Answer #1

X : return of mutual funds.

X ~ N(0.018,0.045)

a).let x be the value that represents the 40th percentile of these​returns.

according the the problem,

[ in any blank cell of excel type =NORMSINV(0.40)press enter]

the 40 th percentile = 0.66 % or 0.0066

b).let x be the value that represents the 99 th percentile of these​returns.

according the the problem,

[ in any blank cell of excel type =NORMSINV(0.99)press enter]

the 99 th percentile = 12.27 % or 0.1227

c).for getting IQR, we have to calculate 25 th percentile and 75 the percentile.

let x be the value that represents the 25 th percentile of these​returns.

according the the problem,

[ in any blank cell of excel type =NORMSINV(0.25)press enter]

the 25 th percentile = -0.012352

let y be the value that represents the 75 th percentile of these​returns.

according the the problem,

[ in any blank cell of excel type =NORMSINV(0.75)press enter]

the 75 th percentile = 0.048352

The IQR be:-


or 6.07 %

***in case of doubt, comment below. And if u liked the solution, please like.

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