Assume a normal distribution with an average return of 7% and a standard deviation of 2%. what is the probability of an actual return of (a) more than 11%; and (b) less than 5%?

0.023 is the probability of an actual return of more than 11%.

0.159 is the probability of an actual return of less than 5%.                                              

Step-by-step explanation:

We are given the following information in the question:

Mean, μ = 7%

Standard Deviation, σ = 2%

We are given that the distribution is a bell shaped distribution that is a normal distribution.

Formula:

a) P(more than 11%)

P(x > 11)

Calculation the value from standard normal z table, we have,  

Thus, 0.023 is the probability of an actual return of more than 11%.

b) P(less than 5%)

P(x < 5)

Calculation the value from standard normal z table, we have,  

Thus, 0.159 is the probability of an actual return of less than 5%.

answer: r there any options?

step-by-step explanation: