- Home >
- Mathematics >
- stocks and rate of return
stocks and rate of return
Question Description
Consider two stocks, A and B, that have investment rates of return that are Normally
distributed as follows:
Stock A: kA = investment rate of return - kA ~ N [ μA = 16 %, σA = 3 % ]
Stock B: kB = investment rate of return - kB ~ N [ μB = 13 %, σB = 6 % ]
For which stock is a rate of return of k2011 = 25% during the current year more unusual?
Utilize the Z score value to evaluate this. Which stock is then more likely to return 25% ?
This question has not been answered.
Create a free account to get help with this and any other question!
Similar Content
Studypool values your privacy. Only questions posted as Public are visible on our website.
Brown University
1271 Tutors
California Institute of Technology
2131 Tutors
Carnegie Mellon University
982 Tutors
Columbia University
1256 Tutors
Dartmouth University
2113 Tutors
Emory University
2279 Tutors
Harvard University
599 Tutors
Massachusetts Institute of Technology
2319 Tutors
New York University
1645 Tutors
Notre Dam University
1911 Tutors
Oklahoma University
2122 Tutors
Pennsylvania State University
932 Tutors
Princeton University
1211 Tutors
Stanford University
983 Tutors
University of California
1282 Tutors
Oxford University
123 Tutors
Yale University
2325 Tutors