[Normal Distribution] Historically, the one-year returns follow approximately the normal distribution. The one-year return for the...
[Normal Distribution] Historically, the one-year returns follow approximately the normal distribution. The one-year return for the S&P 500 was +27% (that is, 0.27) and its standard deviation is 20% (that is, 0.2). What is the probability that a stock in the S&P 500 gained 30% or more last year?
Homework Answers
Answer)
As the data is normally distributed we can use standard normal z table to estimate the answers
Z = (x-mean)/s.d
Given mean = 0.27
S.d = 0.2
P(x>0.3)
Z = (0.3-0.27)/0.2 = 0.15
From z table, P(z>0.15) = 0.4404
Add Answer to:
[Normal Distribution] Historically, the one-year returns follow
approximately the normal distribution. The one-year return for the...
The major stock market indexes had strong results in 2014. The mean one-year return for stocks...
The major stock market indexes had strong results in 2014. The mean one-year return for stocks in the S&P 500, a group of 500 very large companies was +11.4%. The mean one year return for the NASDAQ, a group of 3200 small and medium-sized companies was +13.4%. Historically, the one-year returns are approximately normal, the standard deviation in the S&P 500 is approximately 20% and the standard deviation in NASDAQ is approximately 30%. What is the probability that a stock...
The daily stock price for International Business Machines (IBM) historically has followed an approximately normal distribution...
The daily stock price for International Business Machines (IBM) historically has followed an approximately normal distribution (when adjusting for inflation) with a mean of $131.048 and standard deviation of $2.7756 Approximately 9.44% of days IBM had a stock price greater than what dollar amount?
1. Monthly returns for portfolio A follow normal distribution with mean 7% and standard deviation 3%....
1. Monthly returns for portfolio A follow normal distribution with mean 7% and standard deviation 3%. Monthly returns for portfolio B follow normal distribution with mean 3% and standard deviation 1.5% In February, the return on portfolio A was 11%, and the return on portfolio B was 5%. (a) Which of the two portfolios had a more unusually successful month? (b) What percent of months do you expect portfolio A to perform even better than this February? What percent of...
The heights (measured in inches) of men aged 20 to 29 follow approximately the normal distribution...
The heights (measured in inches) of men aged 20 to 29 follow approximately the normal distribution with mean 69.1 and standard deviation 2.7. Between what two values does the middle 94% of all heights fall? (Please give responses to at least one decimal place) x and Source: The Basic Practice of Statistics, Moore, David S., 4th Ed.
The heights (measured in inches) of men aged 20 to 29 follow approximately the normal distribution...
The heights (measured in inches) of men aged 20 to 29 follow approximately the normal distribution with mean 69.2 and standard deviation 2.7. Between what two values does the middle 91% of all heights fall? (Please give responses to at least one decimal place)
Scores on an exam follow an approximately Normal distribution with a mean of 76.4 and a...
Scores on an exam follow an approximately Normal distribution with a mean of 76.4 and a standard deviation of 6.1 points. What percent of students scored below 70 points?
Scores on an exam follow an approximately Normal distribution with a mean of 76.4 and a...
Scores on an exam follow an approximately Normal distribution with a mean of 76.4 and a standard deviation of 6.1 points. What is the minimum score you would need to be in the top 10%?
(1 point) The summer monsoon rains in India follow approximately a Normal distribution with mean ...
(1 point) The summer monsoon rains in India follow approximately a Normal distribution with mean 852 millimeters (mm) of rainfall and standard deviation 82 mm. Note: Use Table A to nnd the proportion or percentage below (a) In the drought year 1987, 697 mm of rain fell. In what percent of all years will India have 697 mm or less of monsoon rain? (b) "Normal rainfall. means within 20% or the long-term average, or between 683 mm and 1022 mm...
3. A stock index consists of the market value of a collection of stocks. The rate...
3. A stock index consists of the market value of a collection of stocks. The rate of return on stock of 1900-1999, the Standard & ollows an approximately normal distribution. In th oor's 500 index, abbreviated S & P 500, bes produced ar average annual return of approximately with a standard deviation of about 18% (a) In what range do the middle 50% of allstocks yearly returns lie? (As with other problems, it may help to araw a picture.) Answer:...
Assume a stock's monthly returns follow a normal distribution with a mean of 8% and standard...
Assume a stock's monthly returns follow a normal distribution with a mean of 8% and standard deviation of 8%. What is the lower bound of the 68.26% confidence interval on realized monthly returns?
1. Monthly returns for portfolio A follow normal distribution with mean 7% and standard deviation 3%. Monthly returns for portfolio B follow normal distribution with mean 3% and standard deviation 1.5% In February, the return on portfolio A was 11%, and the return on portfolio B was 5%. (a) Which of the two portfolios had a more unusually successful month? (b) What percent of months do you expect portfolio A to perform even better than this February? What percent of...
The heights (measured in inches) of men aged 20 to 29 follow approximately the normal distribution with mean 69.1 and standard deviation 2.7. Between what two values does the middle 94% of all heights fall? (Please give responses to at least one decimal place) x and Source: The Basic Practice of Statistics, Moore, David S., 4th Ed.
(1 point) The summer monsoon rains in India follow approximately a Normal distribution with mean 852 millimeters (mm) of rainfall and standard deviation 82 mm. Note: Use Table A to nnd the proportion or percentage below (a) In the drought year 1987, 697 mm of rain fell. In what percent of all years will India have 697 mm or less of monsoon rain? (b) "Normal rainfall. means within 20% or the long-term average, or between 683 mm and 1022 mm...
3. A stock index consists of the market value of a collection of stocks. The rate of return on stock of 1900-1999, the Standard & ollows an approximately normal distribution. In th oor's 500 index, abbreviated S & P 500, bes produced ar average annual return of approximately with a standard deviation of about 18% (a) In what range do the middle 50% of allstocks yearly returns lie? (As with other problems, it may help to araw a picture.) Answer:...
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 10 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 10 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 10 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 10 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 10 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 10 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 10 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 10 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 10 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 10 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 10 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 10 months ago