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

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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
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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 > %280-12.4%29%2F20.6) =highlight%280.7264%29
B)Tax free municipal bond will give a positive yearly return.
P(Z > %280-5.2%29%2F8.6) =highlight%280.7273%29
C) Common stock will give more than a 10 percent return.
P(Z > %2810-12.4%29%2F20.6) =highlight%280.5464%29
D) Taxfree municipal bond will give more than a 10 percent return.
P(Z > %2810-5.2%29%2F8.6) =highlight%280.2884%29
E) Common stock will give a loss of at least 10 percent.
P(Z ≤ %28-10-12.4%29%2F20.6) =highlight%280.1384%29
F) Tax free municipal bond will give a loss of at least 10 percent
P(Z ≤ %28-10-5.2%29%2F8.6) =highlight%280.0386%29