Assuming that the rates of return associated with a given


Assuming that the rates of return associated with a given asset investment are normally distributed; that the expected return, r, is 19.7%; and that the coefficient variation, CV, is 1.32, answer the following questions:

a. The standard deviation of return is __% (round to three decimal places)

b.

1. The lowest possible expected return associated with a 68% probability of occurrence is __% (round to two decimal places)

2. The highest possible expected return associated with a 68% probability of occurrence is __% (round to two decimal places)

3. The lowest possible expected return associated with a 95% probability of occurrence is __% (round to two decimal places)

4. The highest possible expected return associated with a 95% probability of occurrence is __% (round to two decimal places)

 

5. The lowest possible expected return associated with a 99% probability of occurrence is __% (round to two decimal places)

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Financial Management: Assuming that the rates of return associated with a given
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