Probability of earning a negative rate of return


Problem:

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%.

Required:

Question: What is the probability of earning a negative rate of return?

  • 3.59%
  • 21.19%
  • 40.13%
  • 10.56%

Note: Please show basic calculation.

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Accounting Basics: Probability of earning a negative rate of return
Reference No:- TGS0890090

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