(c) How big does the return have to be to put a domestic stock fund in the top 25% for the three-year period? (Round your answer to two decimal places.) 10000

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.
Chapter13: Probability And Calculus
Section13.CR: Chapter 13 Review
Problem 61CR
icon
Related questions
Question

a-11

You may need to use the appropriate appendix table to answer this question.
The average return for large-cap domestic stock funds over three years was 14.4%, Assume the three-year returns were normally distributed across funds with a standard deviation of 4.4%
(a) What is the probability an individual large-cap domestic stock fund had a three-year return of at least 1957 (Round your answer to four decimal places)
0.1480
(b) What is the probability an individual large-cap domestic stock fund had a three-year return of 10% or less? (Round your answer to four decimal places)
16
(c) How big does the return have to be to put a domestic stock fund in the top 25% for the three-year period? (Round your answer to two decimal places.)
10000
Transcribed Image Text:You may need to use the appropriate appendix table to answer this question. The average return for large-cap domestic stock funds over three years was 14.4%, Assume the three-year returns were normally distributed across funds with a standard deviation of 4.4% (a) What is the probability an individual large-cap domestic stock fund had a three-year return of at least 1957 (Round your answer to four decimal places) 0.1480 (b) What is the probability an individual large-cap domestic stock fund had a three-year return of 10% or less? (Round your answer to four decimal places) 16 (c) How big does the return have to be to put a domestic stock fund in the top 25% for the three-year period? (Round your answer to two decimal places.) 10000
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 3 images

Blurred answer
Recommended textbooks for you
Calculus For The Life Sciences
Calculus For The Life Sciences
Calculus
ISBN:
9780321964038
Author:
GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:
Pearson Addison Wesley,
Glencoe Algebra 1, Student Edition, 9780079039897…
Glencoe Algebra 1, Student Edition, 9780079039897…
Algebra
ISBN:
9780079039897
Author:
Carter
Publisher:
McGraw Hill