Consider a population of 1,024 mutual funds that primarily invest in large companies. You have determined that

Question:

Consider a population of 1,024 that primarily invest in large companies. You have determined that µ, the mean one-year total percentage return achieved by all the funds, is 8.20 and that µ, the standard deviation, is 2.75.
a. According to the empirical rule, what percentage of these funds is expected to be within ± 1 standard deviation of the mean?
b. According to the empirical rule, what percentage of these funds is expected to be within ±2 standard deviations of the mean?
c. According to the Chebyshev's rule, what percentage of these funds is expected to be within ±1, +2, or ±3 standard deviations of the mean?
d. According to the Chebyshev's rule, at least 93.75% of these funds are expected to have one-year total returns between what two amounts? Mutual Funds
Mutual funds are like a pool of funds gathered by different small investors that have simalar investment perspective about returns on their investments. These funds are managed by professional investment managers who act smartly on behalf of the...