Finance Risk and Return

Finance Risk and Return

Assume that the returns from an asset are normally distributed. The average annual return for this asset over a specific period was 14.6 percent and the standard deviation of those stocks in this period was 42.90 percent.

What is the approximate probability that your money will double in value in a single year? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Double in value

%

What about triple in value? (Round your answer to 6 decimal places. (e.g., 32.161616))

Triple in value

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