SOLUTION: An investment broker reports that the yearly returns on common stocks are approximately normally distributed with a mean return of 12.4 percent and a standard deviation of 20.6 per

Question 907602: An investment broker reports that the yearly returns on common stocks are approximately normally distributed with a mean return of 12.4 percent and a standard deviation of 20.6 percent.
On the other hand, the firm reports that the yearly returns on tax free municipal bonds are approximately normally distributed with a mean return of 5.2 percent and a standard deviation of 8.6 percent. Find the probability that a randomly selected:
A) Common stock will give a positive yearly return
B)Tax free municipal bond will give a positive yearly return.
C) Common stock will give more than a 10 percent return.
D) Taxfree municipal bond will give more than a 10 percent return.
E) Common stock will give a loss of at least 10 percent.
F) Tax free municipal bond will give a loss of at least 10 percent
Answer by reviewermath(1029) (Show Source): You can put this solution on YOUR website!
An investment broker reports that the yearly returns on common stocks are approximately normally distributed with a mean return of 12.4 percent and a standard deviation of 20.6 percent.
On the other hand, the firm reports that the yearly returns on tax free municipal bonds are approximately normally distributed with a mean return of 5.2 percent and a standard deviation of 8.6 percent. Find the probability that a randomly selected:
A) Common stock will give a positive yearly return
P(Z > ) =
B)Tax free municipal bond will give a positive yearly return.
P(Z > ) =
C) Common stock will give more than a 10 percent return.
P(Z > ) =
D) Taxfree municipal bond will give more than a 10 percent return.
P(Z > ) =
E) Common stock will give a loss of at least 10 percent.
P(Z ≤ ) =
F) Tax free municipal bond will give a loss of at least 10 percent
P(Z ≤ ) =
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