Question
According to Investment Digest (Diversification and the Risk/Reward Relationship, Winter 1994, 1-3), the mean of the annual return for common stocks from 1926 to 1992
According to Investment Digest ("Diversification and the Risk/Reward Relationship", Winter 1994, 1-3), the mean of the annual return for common stocks from 1926 to 1992 was 16.5%, and the standard deviation of the annual return was 19%.
In later parts of the question we will ask:
a. What is the probability that the stock returns are greater than 0%?
b. What is the probability that the stock returns are less than 18%?
For this part, answer the following question:
What is the area between the mean and our actual score?
Question 3 options:
0.408 in part a, 0.039 in part b | |
0.308 in part a, 0.032 in part b | |
0.408 in part a, 0.319 in part b | |
0.308 in part a, 0.039 in part b |
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