AMBA 600 Innovative Education--snaptutorial.com

AMBA 600 Problem Set 2 For more classes visit Probability 1. Suppose that the mean of the annual return for common stocks from 2000 to 2012 was 14.37%, and the standard deviation of the annual return was 35.14%. Suppose also that during the same 12-year time span, the mean of the annual return for long-term government bonds was 0.6%, and the standard deviation was 2.1%. The distributions of annual returns for both common stocks and long-term government bonds are bell-shaped and approximately symmetric in this Assume that these distributions are distributed as normal random variables with the means and standard deviations given previously.

AMBA 600 Innovative Education--snaptutorial.com