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The Rate of Return for firms on the stock market is about 8% on average(the mean)...

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Basic Math

The Rate of Return for firms on the stock market is about 8% onaverage(the mean) with a standard deviation of 6%.

(A) What proportion of firms will earn a return between 5% and10%?

(B) To the nearest percent, find the probability of afirm earning 0% or less per year (i.e. not making money or losingmoney)? If there are 1,000 firms listed on the stock market, thenhow many firms will not make any money or lose money?

(C) To the nearest percent, find the probability of afirm earning 14% return in a year. If there are still 1,000 firmslisted on the stock market, then how many firms will earn a returnof 14% or higher?

(D) What rate of return would put a firm in the top 15%?

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