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A hedge fund earns a mean annual return of 20% with a 10% standard deviation. One year, the fund return is -10%. What is the
A hedge fund earns a mean annual return of 20% with a 10% standard deviation. One year, the fund return is -10%. What is the probability of a result bad or worse happening?Assume the distribution is symmetrical. (Hint: use Chebyshevs Inequality).
a.) 11%
b.) 12.5%
c.) 25%
d.) 5.5%
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