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Approximate probability that money

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Assume the returns from holding small-company stocks are normally distributed. Also assume the average annual return for holding the small-company stocks for a period of time was 17 percent and the standard deviation of those stocks for the period was 34.9 percent. Use the NORMDIST function in Excel® to answer the following questions.

  • What is the approximate probability that your money will double in value in a single year?
  • What is the approximate probability that your money will triple in value in a single year?

Reference no: EM131466513

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