In studying the past returns on holding DTT, a stock listed in the Stock
Exchange, it is revealed that returns follow a normal distribution with a mean
return of 20% and a standard deviation of 5%.
(i) What is the probability of the stock providing a return of between 12% and
15%? (2 marks)
(ii) What is the return (Y) that will be exceeded only 20% of the time?
(3 marks)
(iii) If 5 return values of DTT stock were examined, what is the probability that
the average returns are between 20% and 25%? (5 marks)