An asset has an average return of 10.43 percent and a standard deviation of 22.83 percent. What is the most you should expect to earn in any given year with a probability of 2.5 percent?

Calculus For The Life Sciences
2nd Edition
ISBN:9780321964038
Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Chapter12: Probability
Section12.4: Discrete Random Variables; Applications To Decision Making
Problem 12E
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An asset has an average return of 10.43 percent and a standard deviation of 22.83 percent. What is the most you should
expect to earn in any given year with a probability of 2.5 percent?
56.09%
44.68%
33.26%
67.51%
78.92%
Transcribed Image Text:An asset has an average return of 10.43 percent and a standard deviation of 22.83 percent. What is the most you should expect to earn in any given year with a probability of 2.5 percent? 56.09% 44.68% 33.26% 67.51% 78.92%
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