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Determining the distribution of returns

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Reference no: EM131064385

Bay Land, Inc. has the following distribution of returns:

STATE

RETURN

PROBABILTIY

Boom

0.3

0.25

Normal

0.4

0.15

Bust

0.3

0.30

Assuming that these returns are normally distributed, what is the probability that Bay Land, Inc. will return less than 7.25%? Show all work, and clearly explain and state your answer

Reference no: EM131064385

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