Suppose the returns on long-term government bonds are normally distributed. Assume long-term government bonds have...
70.2K
Verified Solution
Link Copied!
Question
Accounting
Suppose the returns on long-term government bonds are normally distributed. Assume long-term government bonds have a mean return of 6.8 percent and a standard deviation of 10.3 percent.
What is the probability that your return on these bonds will be less than 13.8 percent in a given year? Use the NORMDIST function in Excel to answer this question. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Probability %
What range of returns would you expect to see 95 percent of the time? (A negative answer should be indicated by a minus sign. Input your answers from lowest to highest to receive credit for your answers. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Expected range of returns % to %
What range would you expect to see 99 percent of the time?
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
