You are in charge of designing a TV commercial for a new airline. The key concept you want to emphasize is “great value.” Keep in mind that value = (perceived benefits)/ (perceived costs). You want your TV commercial to be memorable and stand out, so being a little outrageous is OK. Please come up with such a commercial and describe it.
Suppose you own a risky asset with an expected return of 12.6 percent and a standard deviation of 18.2 percent. If the returns are normally distributed, the most accurate probability that the stock will return more than 50 percent in any one given year is less than: