The Expected Rate of Return for the Coming Year on FTC

question 83

Multiple Choice

The expected rate of return for the coming year on FTC common stock is normally distributed with a mean of 14% and a standard deviation of 7%. Determine the probability of earning a negative rate of return (i.e. less than 0%) on FTC common stock. (Note: Table V is required to work this problem.)

• A) 0.0228
• B) 2.00
• C) 0.5000
• D) 0.9772

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