Normal probability distribution assuming that the rates of


Question: Normal probability distribution Assuming that the rates of return associated with a given asset investment are normally distributed; that the expected return r, is 13.6% and that the coefficient of variation, CV is 1.44 answer the following questions

Find the standard deviation of returns, sr.

Calculated the range of expected return outcomes associated with the following probabilities of occurrence (1) 68%, (2) 95%, (3) 99%

The standard deviation of return ___%

(1) the lowest possible expected return associated with the 68% probability of occurrence is __%

the highest possible expected return associated with the 68% probability of occurrence is __%

(2) the lowest possible expected return associated with the 95% probability of occurrence is __%

the highest possible expected return associated with the 95% probability of occurrence is __%

(3) the lowest possible expected return associated with the 99% probability of occurrence is __%

the highest possible expected return associated with the 99% probability of occurrence is __%

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Finance Basics: Normal probability distribution assuming that the rates of
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