You're not sure if you should buy a stock and need to discover the probability of the stock having a positive return (based on one year).
The annual rates are: mean=4% & standard deviation = 5%© BrainMass Inc. brainmass.com June 3, 2020, 8:59 pm ad1c9bdddf
We first compute the Z-score by the formula: Z = (x - mu)/sigma = (x - 4)/5
For any given value of x, we get the value of the ...
This provides an example of probability of stock having positive return.