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    hemawatee Posts: 1, Reputation: 1
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    Jun 6, 2013, 02:29 PM
    Statistics
    Studies have shown that an ordinary share’s annual rate of return is approximately normally distributed. Assume you have invested in the shares of a company for which the annual return averages 15% with a standard deviation of 10%.
    a) What is the probability that your annual return will exceed 30%?
    b) What are the chances that your return will be negative?
    c) You decide you will re-invest for a further 12 months if the return in the first year is at least 2½ %. What is the probability that you will re-invest?
    d) Determine the return that has a 90% chance of being exceeded.

    I have been able to do until part c, but I don’t understand how part 4 is calculated.


    PLEASE HELP ASAP
    Thank you

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