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Use a standard spreadsheet program, such as Excel, to find the following probabilities from various distributions analyzed in the current chapter:
a. If Y is distributed N (1,4), find Pr(Y ≤ 3)
b. If Y is distributed N (3,9), find Pr(Y > 0)
c. If Y is distributed N (50,25), find Pr(40 ≤ Y ≤ 52)
d. If Y is distributed N (5,2), find Pr(6 ≤ Y ≤ 8)
Beta
A measurement of a stock's volatility compared to the overall market volatility, indicating its relative risk.
Annualized Return
Annualized Return indicates the geometric average amount of money earned by an investment each year over a given time period.
Intrinsic Value
The actual, fundamental value of an asset, based on underlying perceptions of its true value including aspects of both tangible and intangible factors.
Market Efficiency
The hypothesis that financial markets are "efficient" in reflecting information in the price of securities, making it impossible to consistently achieve higher returns without assuming higher risk.
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