Assuming that the rates of return associated with a given asset investment

jagguarpaw January 17, 2017 0 Comments

Question: Assuming that the rates of return associated with…

Assuming that the rates of return associated with a given asset investment are normallydistributed; that the expectedreturn, r is 10.4%; and that the coefficient ofvariation, CV, is 1.06

Answer the followingquestions:

The standard deviation ofreturns, or is_________

1) The lowest possible expected return associated with the 68% probability of occurrence is_____

1a) the highest possible expected return associated with the68% probability of occurrence is ______

2) The lowest possible expected return associated with the 95% probability of occurrence is _______

2a) the highest possible expected return associated with the 95% probability of occurrence is ______

3) The lowest possible expected return associated with the 99% probability of occurrence is

3a) the highest possible expected return associated with the 99% probability of occurrence is