Hey guys I’m a little confused about z-scores.
In reading 9, question 14 C, it asks What is the probablility that the return on the safety-first optimal portfolio will be less that the short fall level, R(L)?
I calculated the z-score to be .53 (correct) which equals 70.19%, but the answer shows it’s 1-0.7019 = 29.81%…
If I’m looking for the level below the short fall level, why would I use ‘1-’? Doesn’t that give the area above the short fall?