A First Course in Probability (10th Edition)
A First Course in Probability (10th Edition)
10th Edition
ISBN: 9780134753119
Author: Sheldon Ross
Publisher: PEARSON
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Capital Investment is analyzing an investment. The expected one year return on the investment is 15 percent. The probability distribution of possible returns is approximately normal with a standard deviation of 10 percent.
i) What are the chances that the investment will result in a negative return?
ii) What is the probability that the return will be greater than 10%?
iii) What is the probability that the return will be between 10% and 25%?

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