You are evaluating two portfolios for your personal

Reference no: EM13628404

You are evaluating two portfolios for your personal investment on the basis of their return.

Portfolio A's yearly return is normally distributed with a mean of 0.05 and a standard deviation of 0.07. Portfolio B's yearly return is normally distributed with a mean of 0.04 and a standard deviation of 0.06. Based on this information, what is the probability that over the next year, the return on portfolio A is lower than the return on portfolio B?

Reference no: EM13628404

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