SOLUTION: Suppose that the annual rate of return for a stock is normally distributed with a mean of 7% and a standard deviation of 4% . Find the probability that the one-year return of this
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Question 382593: Suppose that the annual rate of return for a stock is normally distributed with a mean of 7% and a standard deviation of 4% . Find the probability that the one-year return of this stock will be positive? Round your answer to at least four decimal places. Answer by stanbon(75887) (Show Source):
You can put this solution on YOUR website! Suppose that the annual rate of return for a stock is normally distributed with a mean of 7% and a standard deviation of 4% . Find the probability that the one-year return of this stock will be positive? Round your answer to at least four decimal places.
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z(0) = (0-7)/4 = -1.75
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P(x > 0) = P(z > -1.75) = 0.9599
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Cheers,
Stan H.
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