Suppose a mutual fund has yearly returns that are normally distributed and has a mean yearly...
Suppose a mutual fund has yearly returns that are normally distributed and has a mean yearly return of 9% with standard deviation of 4%. What is the cutoff for the lowest 2.5% of yearly returns with this mutual fund? Round to the nearest tenth of a percent.
Homework Answers
| mean μ= | 9 |
| standard deviation σ= | 4.0000 |
| for 2.5th percentile critical value of z= | -1.96 | ||
| therefore corresponding value=mean+z*std deviation= | 8.83~ 8.8 % | ||
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