Expected monthly price change=E(x) = 0.60% Average monthly volatility = 9.40%
I am looking for the probability that gold will decline by more than 9% in the next month.
According to the formula for z score: X - E(X) / σ the equation would be= 9%-0.60% / 9.40%
Which is = .8936 which on the z score table is .3133
Since Z is positive, the probability would be 0.5 - .3133 = 0.1867 meaning that the probability of gold declining by more than 9% would be 18.67% but this is not shown on the multiple select.
A. 15.39% B. 85% C. 10.22% d. 22.36%