A traders monthly salary depends on the returns of the portf

A trader\'s monthly salary depends on the returns of the portfolio he or she manages. The portfolio monthly returns follow normal distribution with a mean of 8% and a standard deviation of 4.6%. A trader earns a base salary of $1200, and $3000 per unit of returns from the portfolio he/she manage. What is the minimum return of a trader\'s portfolio for the trader to be the top 10% earners in the trading company?

Solution

A trader\'s monthly salary depends on the returns of the portfolio he or she manages. The portfolio monthly returns follow normal distribution with a mean of 8%

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