Assume a security has an expected return of .12 and a standard deviation of 0.08 a)...

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Finance

Assume a security has an expected return of .12 and a standarddeviation of 0.08 a) What is the expected return two standarddeviation above the mean and what is the probability of a returngreater that this amount? B) What is the probability of a returngreater than 0.04 for a given year.

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Expected return of a security 012 standard deviation 008A Expected return two standard deviation above the mean 2 0122008 028Answer See Answer

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Assume a security has an expected return of .12 and a standarddeviation of 0.08 a) What is the expected return two standarddeviation above the mean and what is the probability of a returngreater that this amount? B) What is the probability of a returngreater than 0.04 for a given year.

Assume a security has an expected return of .12 and a standard deviation of 0.08 a)...

70.2K

Verified Solution

Question

Finance

Assume a security has an expected return of .12 and a standarddeviation of 0.08 a) What is the expected return two standarddeviation above the mean and what is the probability of a returngreater that this amount? B) What is the probability of a returngreater than 0.04 for a given year.

Answer & Explanation Solved by verified expert

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