Normal probability distribution Assuming that the rates of return associated with a given asset investment are normally distributed; that the expected return, r, is 10.4%; and that the coefficient of variation, CV, is 1.01, answer the following questions: a. Find the standard deviation of returns, σr. b. Calculate the range of expected return outcomes associated with the following probabilities of occurrence: (1) 68%, (2) 95%, (3) 99%.

Normal probability distribution Assuming that the rates of return associated with a given asset investment are normally distributed; that the expected return, r, is 10.4%; and that the coefficient of variation, CV, is 1.01, answer the following questions: a. Find the standard deviation of returns, σr. b. Calculate the range of expected return outcomes associated with the following probabilities of occurrence: (1) 68%, (2) 95%, (3) 99%.

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter8: Risk And Rates Of Return

Section: Chapter Questions

Problem 3PROB

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