Suppose the mean income of firms in the industry for a year is 95 million dollars with a standard deviation of 11 million dollars. If incomes for the industry are distributed normally, what is the probability that a randomly selected firm will earn less than 114 million dollars

95.73%

Step-by-step explanation:

Given data:

mean μ= 95

standard deviation, σ = 11

to calculate, the probability that a randomly selected firm will earn less than 114 million dollars;

Use normal distribution formula

Substitute the required values in the above equation;

Therefore, the probability that a randomly selected firm will earn less than 114 million dollars = 95.73%

v = 1/3 a^2h

step-by-step explanation:

the volume is 1/3 a^2h.

required rate of return = 0.166 = 16.6%

step-by-step explanation:

under the capital asset pricing model (capm), the required or expected rate of return for a particular security or asset is given using the formula:

required rate of return = risk-free rate + beta*(market risk premium)

we are given that;

risk-free rate = 4% = 0.04

beta = 1.4

market risk premium = 9% = 0.09

we simply plug these values into the above formula;

required rate of return = 0.04 + 1.4*(0.09)

required rate of return = 0.04 + 0.126

required rate of return = 0.166 = 16.6%