00:01
Hi, i'm david and i'm here to help you and see your question.
00:03
Now let me bring up your question here.
00:05
In the question here, we are going to discuss about the normal distribution.
00:09
Let me remind to you that if we have the x that follows by the normal, the mean and the standard deviation, and then if we turn the x minus the mean of a standard deviation, we obtain the standard normal.
00:22
In the question here, the return of the portfolio x will follow by the normal, when the mean equal to the 12 % and the standard division equal to the 18%.
00:33
Now we will have the question a.
00:37
1 % of the return will greater than 66%.
00:40
Want to find the probability of the x that will be greater than the 66.
00:45
To find this probability, i need to convert the x into the z.
00:48
To do it, i need to apply this formula here.
00:51
And then i will get the 66 and we minus the mean will be the 12 over the 18.
00:58
And then we will have the z will be greater than 66 minus 12 divided by 18 equal to the 3...