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Question - Two assets have normally distributed returns: asset A: 5% E(R.) and standard deviation 6% asset B: 8% E(R) and standard deviation 8%.
a) Which asset is more likely to lose money in any holding period?
b) Which asset is more likely to lose at least 8% in any holding period?
c) How likely is asset A to have a return above 17% in any holding period?
d) How likely is asset B to have a return above 16% in any holding period?
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