Computing negative rate of return


Assume that the rate of return on Calgary common stock over the coming year is normally distributed with an expected value of 16% and a standard deviation of 20%. What is the probability of earning a negative rate of return? (Note: Table V is required to work this problem.)

A) 10.56%

B) 40.13%

C) 21.19%

D) 3.59%

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Finance Basics: Computing negative rate of return
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