Suppose the returns on long-term government bonds

Assignment Help Financial Management

Reference no: EM131524259

Suppose the returns on long-term government bonds are normally distributed. Assume long-term government bonds have a mean return of 6.3 percent and a standard deviation of 9 percent. What is the probability that your return on these bonds will be less than −11.7 percent in a given year? Use the NORMDIST function in Excel® to answer this question. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Probability % What range of returns would you expect to see 68 percent of the time? (A negative answer should be indicated by a minus sign. Input your answers from lowest to highest to receive credit for your answers. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Expected range of returns % to % What range would you expect to see 95 percent of the time? (A negative answer should be indicated by a minus sign. Input your answers from lowest to highest to receive credit for your answers. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Expected range of returns

Reference no: EM131524259

Questions Cloud

Argument for the view that university : Construct an argument for the view that your university should or should not have the right to monitor student email.

Estimate fractiles of both of the empirical cdfs : Figure shows two empirical CDFs of the residuals of Sales for two regressions. Estimate (roughly) the 0.20 and 0.80 fractiles of both of these empirical CDFs.

Using the hughes or armstrong model : Using the Hughes or Armstrong Model. How should a fleet’s parameters be improved within the budget to best fight an enemy with known parameter values?

What is the balance in the inventory account : What is the balance in the inventory account at the beginning of the year? Prepare an Income Statement for the year ended December 31, 2013

Suppose the returns on long-term government bonds : Suppose the returns on long-term government bonds are normally distributed. What range would you expect to see 95 percent of the time?

Which type of security would firm need to sell to accomplish : which type of security (stock or bonds) would the firm need to sell to accomplish this, and how much would it have to sell?

The roi of a cloud deployment : This assignment consists of three (3) sections: a narrative, a ROI Spreadsheet, and a project outline.

What are some of the features of well-written requirements : What are some of the features of well-written requirements?What are some of the most common problems with writing requirements?

What is the market price of this stock based on its dividend : Assume you work for a company that has issued 10000 shares of $100 par 5% preferred. What is the market price of this stock based on its dividend?

User Account

All Pages