Assuming the FTSE250 index returns follow a normal distribution, find the follow

Question

Assuming the FTSE250 index returns follow a normal distribution, find the following probabilities:

The probability that the FTSE250 index has a negative annual return, The probability that the FTSE250 index will have an annual yield between -5 and + 5%, The probability that the FTSE250 index will have a positive annual return. FTSE250 index has an annual return between -20, The probability that the FTSE250 index has an annual yield between +5 and 20%, The probability that the FTSE250 index has an annual yield greater than two deviations above the mean, The probability That the FTSE250 index has an annual yield of less than three deviations below the average.

Note: I have FTSE 250 file information but i dont now who i can give you taht information.

Explanation / Answer

The probability that the FTSE250 index has an annual yield greater than two deviations above the mean=(1-0.95)/2=0.025 using empiricle rule 95% have within 2 standard deviations

, The probability That the FTSE250 index has an annual yield of less than three deviations below the average=(1-0.99)/2=0.005 using empiricle rule 99% have within 3 standard deviations

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