University Of Missouri St. Louis Operations And Supply Chain Management Assignment Help - Finance Excel NORMDIST

Question - 20. value:
10.00 points
Suppose the average return on Asset A is 6.4 percent and the standard deviation is 7.6 percent and
the average return and standard deviation on Asset B are 3.5 percent and 3.0 percent, respectively.
Further assume that the returns are normally distributed. Use the NORMDIST function in ExcelA?® to
answer the following questions.

a. What is the probability that in any given year, the return on Asset A will be greater than 9 percent?
Less than 0 percent? (Round your answers to 2 decimal places. (e.g., 32.16))

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? (Round your answers ...Read More to 2 decimal places. (e.g., 32.16))

Greater than 9 percent %
Less than 0 percent %


c-
1
In 1979, the return on Asset A was ?4.31 percent. How likely is it that such a low return will recur
at some point in the future? (Round your answer to 2 decimal places. (e.g., 32.16))

Probability %

c-
2
Asset B had a return of 10.20 percent in this same year. How likely is it that such a high return on
T -bills will recur at some point in the future?(Round your answer to 2 decimal places. (e.g.,
32.16))

Probability %
rev: 12_06_2012
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