Assume the returns from holding small-company stocks are normally distributed. Also assume the average annual return for holding the small-company stocks for a period of time was 17.1 percent and the standard deviation of those stocks for the period was 35 percent. Use the NORMDIST function in Excel® to answer the following questions.
Requirement 1:
What is the approximate probability that your money will double in value in a single year? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)
Probability %
Requirement 2:
What is the approximate probability that your money will triple in value in a single year? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 8 decimal places (e.g., 32.16161616).)
Probability %