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Mathematics, 10.03.2020 21:58 maddyhayes

Assume the annual mean return on ABC stock is around 15%, and the annual standard deviation is around 25%. Assume the annual and daily returns on ABC stock are normally distributeda what is the probability that ABC will lose money during a year?b Thereis a 5% change that ABC will earn a return of at least what value during a year?c There is a 10% change that ABC will earn a return of less than or equal to waht value during a year?d what is the probability that ABC will earn at least 35% during a year?e Assume there are 252 trading days in a year. What is the probability that ABC will lose money on a given day?(Hint: Let Y be the annual return on ABC and Xi be the retun on ABC on day i. Then Y=x1+x2++x252. Use the fact that the sum of independent normal random variables is normally distributed, with mean equal to the sum of the individual means and variance equal to the sum of the individual variances.

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Assume the annual mean return on ABC stock is around 15%, and the annual standard deviation is aroun...
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