[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
  1. (3 points) What is the probability investment A will have a negative return?
    please use Minitab values
  2. (3 points) What is the probability investment B will have a negative return?
    please use Minitab values
  3. (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?

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