Suppose the returns on largecompany stocks are normally dist

Suppose the returns on large-company stocks are normally distributed. Also suppose large-company stocks had an average return of 12.3% and a standard deviation of 28.2%. Use the NORMDIST function in Excel® to answer the following question: Determine the probability that in any given year you will lose money by investing in large-company common stock.. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Probability %

Solution

normdist(x,mean,std,true)

since here we have to loose money th value of x needs to be 0

=normdist(0,12.3%,28,2%,1)

=33.14%