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A portfolio has a mean value of $75 mill...

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题目

A portfolio has a mean value of $75 million and a daily standard deviation of $4.27 million. Assuming that the portfolio values are normally distributed, the probability of the portfolio value falling below $40 million within the next seven days is closest to:

选项

A.0.10%

B.1.00%

C.5.00%

D.15.87%

答案

A

解析

Given that the daily standard deviation is $4.27 million,「huixue_img/importSubject/1564169387395649536.png」Using this standard deviation, the level of $40 million is (40-75)/11.29 = -3.1 standard deviations from the mean value. Given that the returns are normally distributed the probability of value falling more than -3.1 standard deviations from the mean value is 0.1% (since 100% of the probability falls between ±3.1 standard deviations of the mean).