Suppose the returns on long-term government bonds are normally distributed. Assu
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Question
Suppose the returns on long-term government bonds are normally distributed. Assume long-term government bonds have a mean return of 5.5 percent and a standard deviation of 10.5 percent.
What is the probability that your return on these bonds will be less than ?5 percent in a given year? Use the NORMDIST function in Excel
Suppose the returns on long-term government bonds are normally distributed. Assume long-term government bonds have a mean return of 5.5 percent and a standard deviation of 10.5 percent.
Explanation / Answer
Solution - We have
1) What is the probability that your return on these bonds will be less than ?5 percent in a given year? Use the NORMDIST function in Excel
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