Companies are often concerned with the notion of worst proba

Companies are often concerned with the notion of worst probable case performance of their portfolios. They wish to know the mean return such that we would expect 99% of samples of 30 stocks to perform better than this mean return. Compute this value and report the answer to two decimal places.

Solution

99% of samples must perform better

n =30

z score for 99% is 2.58

Hence answer is 2.58