Suppose the average return on asset a is 69 percent and the


Suppose the average return on Asset A is 6.9 percent and the standard deviation is 8.1 percent and the average return and standard deviation on Asset B are 4.0 percent and 3.5 percent, respectively. Further assume that the returns are normally distributed. Use the NORMDIST function in Excel® to answer the following questions. a. What is the probability that in any given year, the return on Assets A will be greater than 10 percent? Less than 0 percent? (Do not round intermediate calculations and round your answers to 2 decimal places. (e.g., 32.16)) What is the probability that in any given year, the return on Asset B will be greater than 10 percent? Less than 0 percent? (Do not round intermediate calculations and round your answers to 2 decimal places. (e.g., 32.16)) In a particular year, the return on Asset A was −4.36 percent. How likely is it that such a low return will recur at some point in the future? (Do not round intermediate calculations and round your answers to 2 decimal places. (e.g., 32.16)) Asset B had a return of 10.70 percent in this same year. How likely is it that such a high return on Asset B will recur at some point in the future? (Do not round intermediate calculations and round your answers to 2 decimal places. (e.g., 32.16))

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Financial Management: Suppose the average return on asset a is 69 percent and the
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