Question
A young investment manager tells his client that the probability of making a positive return with his suggested portfolio is 77%. If it is known
A young investment manager tells his client that the probability of making a positive return with his suggested portfolio is 77%. If it is known that returns are normally distributed with a mean of 5.8%, what is the risk, measured by standard deviation, that this investment manager assumes in his calculation? (You may find it useful to reference the z table. Round "z" value and final answer to 3 decimal places.)
Standard deviation :
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Financial Management Principles And Practice
Authors: Timothy J. Gallagher, Joseph D. Andrew
3rd Edition
0131768824, 978-0131768826
