Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

An investment has a mean return of 16% and a standard deviation of returns equal to 8%. If the distribution of returns is approximately normal,

An investment has a mean return of 16% and a standard deviation of returns equal to 8%. If the distribution of returns is approximately normal, which of the following statements is least accurate? The probability of obtaining a return:

A. less than 16% is about 50%. B. greater than 32% is about 2.28%. C. between 8% and 24% is about 95.44%. D. greater than 0% is about 97.72%.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Applied Equity Analysis and Portfolio Management Tools to Analyze and Manage Your Stock Portfolio

Authors: Robert A.Weigand

1st edition

978-111863091, 1118630912, 978-1118630914

More Books

Students also viewed these Finance questions