Logo
Home Study Material Contact Search
AI Chat FREE
  1. mathematics
  2. statistics
  3. the major stock market indexes had strong results

The major stock market indexes had strong results in 2014. The mean one-year return for stocks...

80.2K

Verified Solution

Question

Statistics

The major stock market indexes had strong results in 2014. Themean one-year return for stocks in the S&P 500, a group of 500very large companies was +11.4%. The mean one year return for theNASDAQ, a group of 3200 small and medium-sized companies was+13.4%. Historically, the one-year returns are approximatelynormal, the standard deviation in the S&P 500 is approximately20% and the standard deviation in NASDAQ is approximately 30%.

  1. What is the probability that a stock in the S&P 500 gainedvalue in 2014?
  2. What is the probability that a stock in the S&P 500 gained10% or more in 2014?
  3. What is the probability that a stock in the S&P 500 lost20% or more in 2014?
  4. What is the probability that a stock in the S&P 500 lost30% or more in 2014?
  5. Repeat (a) through (d) for a stock in the NASDAQ.
  6. Write a short report on your findings Be sure to include adiscussion on the risks associated with a large standard deviation.How would you use the findings to provide advice on investing inthe S&P 500 or NASDAQ stock market?

Please explain how you get the answer to x (or Z) step bystep

Answer & Explanation Solved by verified expert
4.4 Ratings (617 Votes)
    See Answer
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

Programming
1.2K views

Python Language: Similar to Project 3, write a program that loops a number from 1 to 10...

Physics
1.2K views

Please show all work! thanks! A 80.0 cm long guitar string has mass of 75.0g and it is...

Psychology
1.2K views

Part 1: It has been estimated that 1 million people die from suicide each year, with...

Basic Math
1.2K views

A company has developed a design for a high-quality portable printer. The two key components of...

Basic Math
1.2K views

The following figures show stages 0 1 and 2 of the construction of a figure...

Calculus
1.2K views

Algebraically find the inverse function of f x 6 5e Graph f f and the...

Accounting
1.2K views

Walmart 2021 annual report. Q - What was the total obligation associated with operating lease?...

Accounting
1.2K views

Consider a dataword of length 5 bits. Show the block diagrams of an encoder and...

Accounting
1.2K views

The financial condition of two companies is expressed in the following accounting equation: Assets =...

Accounting
1.2K views

The purpose of this analysis is to find an intrinsic value for Microsoft (MSFT) using...

Accounting
1.2K views

For ABC company you are finalizing your approach to auditing. Indicate whether the transaction will...

Accounting
1.2K views

CREATE A JOURNAL ENTRY FOR TRANSACTION F! Follow the guideline and set up of how...