Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. assume the returns from holding an asset are norma

Assume the returns from holding an asset are normally distributed. Also assume the average annual...

80.2K

Verified Solution

Question

Accounting

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 17.1 percent and the standard deviation of this asset for the period was 35 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 decimal 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.
\table[[a. Probability,%
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students