Double in value in a single year


Problem:

Assume that the returns from an asset are normally distributed. The average annual return for this asset over a specific period was 13.2 percent and the standard deviation of those stocks in this period was 41.10 percent.

Required:

Question 1: What is the approximate probability that your money will double in value in a single year?

Question 2: What about triple in value?

Note: Show all workings.

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Accounting Basics: Double in value in a single year
Reference No:- TGS0891726

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