The average return for largecap domestic stock funds over th

The average return for large-cap domestic stock funds over the three years 2009

Solution

a.) P(X>0.2) = P(Z>(0.2-0.147)/0.042) = P(Z>1.26) = 1 - 0.8962 = 0.1038

b.) P(X<0.1) = P(Z<(0.1-0.147)/0.042) = P(Z<-1.12) = 1 - 0.8686 = 0.1314

c.) Top 10% , z = 1.28

x = 0.147 + (1.28)*(0.042) = 0.20076 = 20.08%