b. Graph the probability distribution for the bond returns based on the 5 scenarios. What...
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b. Graph the probability distribution for the bond returns based on the 5 scenarios. What might the graph of the probability distribution look like if there were an infinite number of scenarios.
Provide step by step how to do this in excel.
\\begin{tabular}{l|r|r|} & Probability & \\multicolumn{2}{|c}{} \\\\ \\hline Scenario & 0.1 & \\multicolumn{1}{|c|}{ Return } \\\\ \\hline of scenario & \14 \\\\ \\hline Worst Case & 0.2 & \4 \\\\ \\hline Poor Case & 0.4 & \6 \\\\ \\hline Most Likely & 0.2 & \16 \\\\ \\hline Good Case & 0.1 & \26 \\end{tabular}
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\\begin{tabular}{l|r|r|} & Probability & \\multicolumn{2}{|c}{} \\\\ \\hline Scenario & 0.1 & \\multicolumn{1}{|c|}{ Return } \\\\ \\hline of scenario & \14 \\\\ \\hline Worst Case & 0.2 & \4 \\\\ \\hline Poor Case & 0.4 & \6 \\\\ \\hline Most Likely & 0.2 & \16 \\\\ \\hline Good Case & 0.1 & \26 \\end{tabular}
