If the daily returns on the share market are normally distributed with a mean of 0.05% and a standard deviation of 1.00%, the probability that the share market would have a return of -23.00% or worse on one particular day (as it did on Black Monday) is approximately ________.
A)0.0%
B)0.1%
C)1.0%
D)10.0%

Question

Quizplus · Accepted Answer

The probability of a return of -23.00% or worse is extremely low, essentially 0%, given the mean and standard deviation of the normal distribution.

If the Daily Returns on the Share Market Are Normally