Probability that annual return in a given year will be -ve

Assignment Help Econometrics
Reference no: EM13177748

Suppose that a mutual fund has an annual rate of return that is normally distributed with a mean of 10% and a standard deviation of 4%. What is the probability that the annual return in a given year will be negative? What is the probability that the annual return in a given year will exceed 15%? Suppose that the fund managers change the holdings of the fund such that the mean becomes 15% and the standard deviation becomes 5%. What are the new values for the previous two questions?

Reference no: EM13177748

Questions Cloud

Find rank(a) and rank(a^t) : Find a basis for the col(A) and a basis for col(A^t).
Explain a professors rule of thumb : He randomly selects 8 students and finds that they study the following amounts per week: 1, 2, 4, 4, 6, 6, 8 and 14. Assuming a normal distribution, can the professor conclude with 95% certainty that the students are studying as they should?
Find probability that there be at least one false negative : Is this test will be given to 600 randomly selected people, where each person has the illness, find the probability that there will be at least one false negative.
What are the starting salaries of economics majors : Starting salaries of economics majors have a mean of $47,000/year with a standard deviation of $8,000. What is the probability that a random sample of 100 majors will have an average salary of more than $50,000 year?
Probability that annual return in a given year will be -ve : What is the probability that the annual return in a given year will exceed 15%? Suppose that the fund managers change the holdings of the fund such that the mean becomes 15% and the standard deviation becomes 5%. What are the new values for the pre..
What is the simulated value : a normal distribution has a mean of 500 a standard deviation of 50. A manager wants to simulate one value from this distribution, and has drawn the number 1.4 randomly. What is the simulated value?
What is probability that at least one right-handed student : An Introduction to Economics class with 188 students meets in this lecture hall. What is the probability that at least one right-handed student in this class is forced to use a seat designed for a left-hander?
How many children do they have : the dunbar family consists of a mother, a father and some children. The average age of the members of the family is 20. The father is 48 and the average age of the mother and the children is 16. how many children do they have?
What are the opportunity costs of each action : Then make a list of actions the Japanese government must accomplish to restore the economy and provide health and safety to the citizens. Keep in mind the limited resources available and priorities of each restorative action. What are the opportun..

Reviews

Write a Review

Econometrics Questions & Answers

  Write down the probability mass function

Simple linear regression predicting the change in performance (in seconds taken to run a race) for 800m runners by the average hours of training undertaken per week during the pre-season.

  Find the mean forecast value gnp

Based on the information for the U.S. for the period 1970 to 1983, the following regression results were obtained, GNPt = -787.4723 + 8.0863M1t r2 = 0.9912

  Find the inverse demand curve

How much consumer surplus do consumers receive when Px = $45? c. How much consumer surplus do consumers receive when Px = $30? The demand curve for product X is given by QXd = 360 - 2PX.

  Define unemployment in the cattle industry

Determine unemployment in the cattle Industry. Explain a current status of unemployment in the Cattle Industry.

  Calculate the correct beta values

When watching television after dinner, you suffer memory loss. You can not remember what demonstrate you just watched or what you ate for dinner.

  Calculate the price elasticity of demand in summer

Calculate the price elasticity of demand in summer for transit services and the cross-price elasticity of demand for transit with respect to the level of business activity.

  Determine the poverty rate for country

There are 20 million households in Country X and 4 million of them are below the poverty line. What is the poverty rate for Country X?

  What are the burdens of the public debt

Many people advocate taxing "the rich" to alleviate the debt problem but the truth is that taxes will have to be increased on all income earners. What macroeconomic impacts would you expect to see if taxes are raised "across the board"?

  What is the sample standard deviation of weights

What is the sample standard deviation of weights and calculate the change in weight

  What is the necessary levels of high powered money

Suppose the ratio of deposits that banks hold in the form of reserves is 7 percent. Suppose further that people want to hold 8 percent of their deposits in the form of cash. Then if the fed wants the money supply to be $6,228 billion, what is the ..

  What is the optimal price of the textbook

What is the optimal price of the textbook from the author's point of view and by how much would the demand for the textbook change if advertising were increased by 2%?

  Find and interpret the coefficient of determination

If a random sample of 400 customers is selected, what is the probability of Type I error using this decision rule?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd