Assuming That the Change in Daily Closing Prices for Stocks

question 3

Multiple Choice

Assuming that the change in daily closing prices for stocks on the New York Stock Exchange is a random variable that is normally distributed with a mean of $0.35 and a standard deviation of $0.33. Based on this information, what is the probability that a randomly selected stock will be lower by $0.40 or more?

• A) 2.27
• B) 0.4884
• C) 0.0116
• D) 0.9884

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