Use the Normal Distribution to Approximate the Desired Probability

question 63

Multiple Choice

Use the normal distribution to approximate the desired probability.
-Find the probability that in 200 tosses of a fair die, we will obtain at least 30 fives.

• A) 0.5871
• B) 0.7673
• C) 0.6229
• D) 0.8871

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Definitions:

Risk Characteristics

The inherent features of an investment that determine its potential return and the likelihood of loss.

Risk-Free Rate

The theoretical rate of return on an investment with zero risk, typically associated with government bonds.

Market Risk Premium

The extra return that investors require to hold a risky market portfolio instead of risk-free assets.

Beta

A measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole.