Woodpecker, Inc., stock has an annual return mean and standard deviation of 21.0

Question

Woodpecker, Inc., stock has an annual return mean and standard deviation of 21.0 percent and 47 percent, respectively. What is the smallest expected loss in the coming month with a probability of 2.5 percent? (Negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)

Woodpecker, Inc., stock has an annual return mean and standard deviation of 21.0 percent and 47 percent, respectively. What is the smallest expected loss in the coming month with a probability of 2.5 percent? (Negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)

Explanation / Answer

For loss with a probability of 2.5%, the minimum, the z value should be = -1.96

Value of X can be found out from the equation

(X - 21)/47 = -1.9

X - 21 = - 89.3

X = - 68.3

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