Assume that the returns from an asset are normally distributed. The average annualreturn for this asset over a specific period was 17.1 percent and the standard deviation ofthose returns in this period was 41.7 percent.a. What is the approximate probability that your money will double in value in a singleyear? (Do not round intermediate calculations and enter your answer as a percentrounded to 2 decimal places, e.g., 32.16.)b. What about triple in value? (Do not round intermediate calculations and enter youranswer as a percent rounded to 6 decimal places, e.g., 161616.)Probability of doublingb. Probability of triping2.33 %%

The returns from an asset are normally distributed. The mean of distribution is percent. The…

Answered: Assume that the returns from an asset…

A First Course in Probability (10th Edition)

10th Edition

ISBN:9780134753119

Author:Sheldon Ross

Publisher:Sheldon Ross

Chapter1: Combinatorial Analysis

Section: Chapter Questions

Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...

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Suppose that the annual rate of return for a common biotechnology stock is normally distributed with a mean of 4% and a standard deviation of 5%. Find the probability that the one-year return of this stock will be negative. Round your answer to at least four decimal places. Continue cer esc % %24 23 3 @ 5 2 e
Empirical research on stock market data for two consecutive trading days indicates that 50%% of the stocks that went up on the first day also went up on the second day. Yesterday, 400 stocks went up. Answer the following. (If necessary, consult a list of formulas.) (a) Find the mean of p, where p gives the proportion of the 400 stocks that went up yesterday that will go up today. (b) Find the standard deviation of p. (c) Compute an approximation for Pp<0.52), which Is the probability that fewer than 52 % of the stocks that went up yesterday will go up again today. Round your answer to four decimal places.
Today, the waves are crashing onto the beach every 6 seconds. The times from when a person arrives at the shoreline until a crashing wave is observed follows a Uniform distribution from 0 to 6 seconds. Round to 4 decimal places where possible. a. The mean of this distribution is ? b. The standard deviation is ? c. The probability that wave will crash onto the beach exactly 4.2 seconds after the person arrives is P(x = 4.2) = ?
Show computation through excel. During the past 5 years, you owned 2 stocks that had the following annual rates of return. Year 1 2 3 4 5 Stock T 0.19 0.08 -0.12 -.030 0.15 Stock B 0.08 0.03 -0.09 0.02 0.04 1. Compute the arithmetic mean annual rate of return for each stock. Which stock is most desirable by this measure? 2. Compute the standard deviation of the annual rate of return for each stock. By this measure, which is the preferable stock? 3. Compute the coefficient of variation for each stock. By this relative measure of risk, which stock is preferable? 4. Compute the geometric mean rate of return for each stock. 5. Discuss the difference between the arithmetic mean return and the geometric mean return of each stock. Relate the differences in the mean returns to the standards deviation of the return for each stock.
Empirical research on stock market data for two consecutive trading days indicates that 60% of the stocks that went up on the first day also went up on the second day. Yesterday, 600 stocks went up. Answer the following. (If necessary, consult a list of formulas.) (a) Find the mean of p, where p gives the proportion of the 600 stocks that went up yesterday that will go up today. (b) Find the standard deviation of p. (c) Compute an approximation for P(p > 0.56), which is the probability that more than 56% of the stocks that went up yesterday will go up again today. Round your answer to four decimal places.
At a train station, there are 7 ticket vending machines. Customers form a single waiting line to buy tickets from one of the machines. It is observed that the interarrival time is exponentially distributed with its mean equal to 2.0 minutes. On average, it takes a customer 7 minutes to buy a ticket, with a standard deviation of the time estimated as 4 minutes. On average, how many customers are waiting in the line? Note: Round your answer to two decimal places.
The length of time a person shops for groceries can be modeled by an exponential distribution with the average equal to 25 minutes. a. What is the probability that a person spends less than 41.8 minutes shopping for groceries? Answer in exact fraction, or rounded to at least 4 decimal places. b. Determine the 82 percentile amount of time spent shopping for groceries. Answer in exact fraction, or rounded to at least 4 decimal places. minutes
From this table, compute the ff: Mean: A. 1.40 B. 1.96 C. 1.55 D. 4.12 E. 4.70 Standard deviation A. 1.40 B. 1.96 C. 1.55 D. 4.12 E. 4.70 *The table below shows the number of goals scored by Team Pinoy in the 20 games of the season.
Assume that the lifetime of a certain component has an exponential distribution with mean 5 (and that time is measured in years). a. What is the standard deviation of lifetimes? b. What is the probability that a component lasts longer than 10 years? c. What is the probability that a component will function for at least 10 years, given that it has already function for 3 years?
The age of children in kindergarten on the first day of school is uniformly distributed between 4.95 and 5.87 years old. A first time kindergarten child is selected at random. Round answers to 4 decimal places if possible. a. The mean of this distribution is b. The standard deviation is c. The probability that the the child will be older than 5 years old? d. The probability that the child will be between 5.35 and 5.55 years old is e. If such a child is at the 44th percentile; how old is that child? years old. Question Help: Video 1 C Video 2 e Written Example 1 Message instructor Submit Question Jump to Answer 80 こ。 DD F3 F4 F5 F6 F7 FS %23 $ & 1 3 4 7 8. 9 W E R T Y S K C B M つ

The time that a student spends on finding a certain book in library have an exponential distribution of 8 minutes. Find the following : A. Rate parameter B. standard deviation C. probability that the time spent in searching is less than 5 minutes D. 50th percentile E. Time spent that belongs to the highest 5%
Today, the waves are crashing onto the beach every 5.3 seconds. The times from when a person arrives at the shoreline until a crashing wave is observed follows a Uniform distribution from 0 to 5.3 seconds. Round to 4 decimal places where possible. a. The mean of this distribution is b. The standard deviation is c. The probability that wave will crash onto the beach exactly 3.3 seconds after the person arrives is P(x = 3.3) = d. The probability that the wave will crash onto the beach between 1.9 and 2.3 seconds after the person arrives is P(1.9 3.26) = f. Find the minimum for the upper quartile. seconds.

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