Suppose that a mutual fund has an annual rate of return

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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: EM13378346

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