You are examining the stock returns for Random Inc which are assumed to be normally distributed. The expected return is 18%, and the standard deviation of the returns is 11%. Random's coefficient of variation is 1.1, and their stock's beta is 0.7. There is an 84% chance that you will earn less than about what return in the coming year?

Calculus For The Life Sciences
2nd Edition
ISBN:9780321964038
Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Chapter12: Probability
Section12.4: Discrete Random Variables; Applications To Decision Making
Problem 10E
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You are examining the stock returns for Random Inc which are assumed to be normally
distributed. The expected return is 18%, and the standard deviation of the returns is 11%.
Random's coefficient of variation is 1.1, and their stock's beta is 0.7. There is an 84% chance
that you will earn less than about what return in the coming year?
Transcribed Image Text:You are examining the stock returns for Random Inc which are assumed to be normally distributed. The expected return is 18%, and the standard deviation of the returns is 11%. Random's coefficient of variation is 1.1, and their stock's beta is 0.7. There is an 84% chance that you will earn less than about what return in the coming year?
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