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The Expected Rate of Return for the Coming Year on FTC

Question 79

Multiple Choice

The expected rate of return for the coming year on FTC common stock is normally distributed with a mean of 14% and a standard deviation of 7%. Determine the probability of earning more than 21% on FTC common stock.


A) 1.00
B) 0.8413
C) 0.0013
D) 0.1587
(Note: Table V is required to work this problem.)

Correct Answer:

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