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Business, 22.11.2019 00:31 laskew37221

Suppose the average return on asset a is 6.3 percent and the standard deviation is 7.5 percent and the average return and standard deviation on asset b are 3.4 percent and 3.0 percent, respectively. further assume that the returns are normally distributed. use the normdist function in excel® to answer the following questions

a. what is the probability that in any given year, the return on assets a will be greater than 9 percent? less than 0 percent?

b. what is the probability that in any given year, the return on asset b will be greater than 9 percent? less than 0 percent?

c-1 in a particular year, the return on asset a was −4.30 percent. how likely is it that such a low return will recur at some point in the future?

c-2 asset b had a return of 10.10 percent in this same year. how likely is it that such a high return on asset b will recur at some point in the future?

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