Posted by **Branden** on Wednesday, August 31, 2011 at 12:34pm.

At the end of the first quarter of 2006, all the major stock market indexes had posted strong gains in the past 12 months. Mass Mutual Financial Group credited the increases to solid growth in corporate profits. The mean one-year return for stocks in the S&P 500, a group of 500 very large companies, was approximately 12%. The mean one-year return for companies in the Russell 2000, a group of 2000 small companies, was approximately 26%. Historically, the one-year returns are approximately normal, the standard deviation in the S&P 500 is approximately 20%, and the standard deviation in the Russell 2000 is approximately 35%.

a. What is the probability that a stock in the S&P 500 gained 25% or more in the last year? gained 50% or more?

b. What is the probability that a stock in the S&P 500 lost money in the last year? Lost 25% or more? lost 50% or more?

c. Repeat (a) and (b) for a stock in the Russell 2000.

I'm really having trouble with this one. I know it's lengthy, but any help would be greatly appreciated!

- Math -
**Anonymous**, Wednesday, October 12, 2016 at 10:54pm
Aa

## Answer This Question

## Related Questions

- Math - Ms. Jones had her class keep track of the losses and gains of a ...
- Business - Based on this financial info where a company's Beta Year = 2008, the...
- Intermediate Accounting - On February 24, 2006, Bart Company purchased 2,000 ...
- Statistics - You have received a year-end bonus of $5000. You decide to invest ...
- Accounting - Genentech, Inc. is a California-based biotech pioneer recently ...
- General Education Statistics | MAT112 - There are many ways people can invest ...
- business - Assignment Choose a company that has experienced negative press ...
- principles of business - Assignment Choose a company that has experienced ...
- statistics - The American Association of Individual Investors (AAII) polls its ...
- Math - If a company pays $4.90 dividend at the end of the year, and the stock ...

More Related Questions