Assume the returns from holding small-company stocks are


Assume the returns from holding small-company stocks are normally distributed. Also assume the average annual return for holding the small-company stocks for a period of time was 16.5 percent and the standard deviation of those stocks for the period was 32.5 percent. Use the NORMDIST function in Excel® to answer the following questions.

Requirement 1:

What is the probability that your money will double in value in a single year? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 3 decimal places (e.g., 32.161).)

Probability            %

Requirement 2:

What is the probability that your money will triple in value in a single year? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 8 decimal places (e.g., 32.16161616).)

 

Probability            %

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Financial Management: Assume the returns from holding small-company stocks are
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