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Consider three stock funds, which we will call Stock Funds 1 , 2 , and 3 . Suppose that Stock Fund 1 has a mean
Consider three stock funds, which we will call Stock Funds and Suppose that Stock Fund has a mean yearly return of
percent with a standard deviation of percent; Stock Fund has a mean yearly return of percent with a standard deviation
of percent, and Stock Fund has a mean yearly return of percent with a standard deviation of percent.
a For each fund, find an interval in which you would expect percent of all yearly returns to fall. Assume returns are normally
distributed. Round your answers to decimal places. Negative amounts should be indicated by a minus sign.
b Using the intervals you computed in part a compare the three funds with respect to average yearly retConsider three stock funds, which we will call Stock Funds and Suppose that Stock Fund has a mean yearly return of
percent with a standard deviation of percent; Stock Fund has a mean yearly return of percent with a standard deviation
of percent, and Stock Fund has a mean yearly return of percent with a standard deviation of percent.
a For each fund, find an interval in which you would expect percent of all yearly returns to fall. Assume returns are normally
distributed. Round your answers to decimal places. Negative amounts should be indicated by a minus sign.
b Using the intervals you computed in part a compare the three funds with respect to average yearly returns and with respect to
variability of returns.urns and with respect to
variability of returns.
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