[Steps Shown] Annual percentage returns for each of two investments are normally distributed. The means and standard deviations of the investments are shown
Question:
Annual percentage returns for each of two investments are normally distributed. The
means and standard deviations of the investments are shown in Table 1.
Table 1: Return information for investments in Problem 6.
| Investment | A | B |
| Mean | 0.157 | 0.162 |
| Standard deviation | 0.181 | 0.195 |
-
(3 points) What is the probability investment A will have a negative return?
please use Minitab values -
(3 points) What is the probability investment B will have a negative return?
please use Minitab values - (3 points) If an investor uses the investments from Question 6 to create a portfolio by putting 60% of her money in B and the rest in A, the mean return for the portfolio is 16% and the standard deviation is 13.8%. What is the probability the portfolio will have a negative return?
Price: $2.99
Solution: The downloadable solution consists of 2 pages
Deliverable: Word Document 