An investment manager is worried about how the value of his portfolio might change on a bad day. The daily change in his portfolio value is normally distributed with a mean of $900 and standard deviation of $750. What is the probability the portfolio goes down by $200 or more on a given day (daily change of -200)? a. 0.00% b. 11.51% c. 39.36% d. 41.29% e. 7.08%
Added by Lori C.
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In this case, X = -200, mean = 900, and standard deviation = 750. Z = (-200 - 900) / 750 Z = -1100 / 750 Z = -1.47 Show more…
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