your ey will triple in value in a single year? d enter your answer as a percent rounded to

Calculus For The Life Sciences
2nd Edition
ISBN:9780321964038
Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Chapter13: Probability And Calculus
Section13.CR: Chapter 13 Review
Problem 9CR
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Assume the returns from holding an asset are normally distributed. Also assume the average annual return for holding the asset a
period of time was 16.3 percent and the standard deviation of this asset for the period was 34 percent. Use the NORMDIST function in
Excel to answer the following questions.
a. What is the approximate probability that your money will double in value in a single year?
Note: Do not round intermediate calculations and enter your answer as a percent rounded to 3 décimal places, e.g., 32.161.
b. What is the approximate probability that your money will triple in value in a single year?
Note: Do not round intermediate calculations and enter your answer as a percent rounded to 8 decimal places, e.g.,
32.16161616.
Answer is complete but not entirely correct.
a. Probability
0.630 %
b. Probability
0.00000200 X %
Transcribed Image Text:Assume the returns from holding an asset are normally distributed. Also assume the average annual return for holding the asset a period of time was 16.3 percent and the standard deviation of this asset for the period was 34 percent. Use the NORMDIST function in Excel to answer the following questions. a. What is the approximate probability that your money will double in value in a single year? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 3 décimal places, e.g., 32.161. b. What is the approximate probability that your money will triple in value in a single year? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 8 decimal places, e.g., 32.16161616. Answer is complete but not entirely correct. a. Probability 0.630 % b. Probability 0.00000200 X %
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