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Please help me complete this! I have been struggling for a while,and mainly I need the answer! Thank you! Give Kudos! Question 4 (10 points):
Please help me complete this! I have been struggling for a while,and mainly I need the answer! Thank you! Give Kudos!
Question 4 (10 points): You are given the following historical data regarding different investment opportunities. Investment Small-Cap Stocks Large-cap stocks U.S Treasury bonds Average return 18.0% 15.0% 5.4% Standard deviation 15.0% 15.0% 8.35% (a) What is the range of returns for large cap stocks you would expect to see 68% of the time? b) How often will you make money on large cap stocks? Justify your response. Hint: Use the normal distribution to see how often you are in the positive return range. (c) Given this table, would you choose to invest in small cap stocks over large cap stocks? Justify your answer in one sentence Step by Step Solution
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