Math Problem Statement

Suppose that the annual rate of return for a common biotechnology stock is normally distributed with a mean of 4% and a standard deviation of 6. Find the probability that the one-year retum of this stock will be negative. Round your answer to at least four decimal places.

Solution

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Math Problem Analysis

Mathematical Concepts

Probability Theory
Normal Distribution
Z-score

Formulas

Z-score formula: Z = (X - μ) / σ

Theorems

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Suitable Grade Level

Advanced High School