You may need to use the appropriate appendix table to answer this question. The average return for large-cap domestic stock funds over the three years 2009–2011 was 14.4%.† Assume the three-year returns were normally distributed across funds with a standard deviation of 4.4%. (a) What is the probability an
You may need to use the appropriate appendix table to answer this question.
The average return for large-cap domestic stock funds over the three years 2009–2011 was 14.4%.† Assume the three-year returns were
(a)
What is the
(b)
What is the probability an individual large-cap domestic stock fund had a three-year return of 10% or less? (Round your answer to four decimal places.)
(c)
How big does the return have to be to put a domestic stock fund in the top 25% for the three-year period? (Round your answer to two decimal places.)
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