According to Investment Digest ("Diversification and the Risk/Reward Relationship", Winter 1994, 1-3), the mean of teh 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 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?

P(x>0) = 80.7%; P(X,18) = 53.2%

P(x>0) = 86.7%; P(X,18) = 53.2%

P(x>0) = 19.2%; P(X,18) = 46.8%

P(x>0) = 29.7%; P(X,18) = 53.2%