Multiple Choice
Sitco has a total of $12 million in cash and marketable securities. Free cash flows during the coming year are expected to be $47 million with a standard deviation of $31 million. Assume that Sitco's free cash flows are approximately normally distributed. What is the probability that Sitco will run out of cash during the coming year?
A) 29.98%
B) 34.83%
C) 97.13%
D) 2.87%
Correct Answer:
Verified
Correct Answer:
Verified
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