Suppose the daily change in price of a stock is normally distributed with mean = .20 and standard deviation = .30.What price change is associated with the 25^th percentile? A).1925 B).2075 C).401 D)-.001

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Quizplus · Accepted Answer

The 25th percentile of a normal distribution is found using the z-score for 25%, which is approximately -0.675. Using the formula: price change = mean + (z-score * standard deviation), we get 0.20 + (-0.675 * 0.30) = -0.001.

Suppose the Daily Change in Price of a Stock Is