FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The historical returns on a balanced portfolio have had an average return of 10% and a standard deviation of 15%. Assume that returns on this

The historical returns on a balanced portfolio have had an average return of 10% and a standard deviation of 15%. Assume that returns on this portfolio follow a normal distribution. Use the empirical rule for normal distributions to answer the following questions.

a. What percentage of returns were greater than 55%?

b. What percentage of returns were below5%?

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

Introduction to Probability

Introduction to Probability

Authors: Mark Daniel Ward, Ellen Gundlach

1st edition

716771098, 978-1319060893, 1319060897, 978-0716771098

More Books

Students also viewed these Mathematics questions

Question

★★★★★
Which world region had the smallest number of Internet users in 2008?

Answered: 1 week ago

Question

★★★★★
Mark Zuckerberg, CEO of Meta, is a well-known tech executive. He also happens to own (as of this writing) about 13.6% of Meta (formerly Facebook). So, it would seem that Zuckerberg, while having a...

Answered: 1 week ago

Question

★★★★★
2 Skype is currently the VOIP market leader. What are the dangers of being a market leader? Assess the alternative strategies that Skype could consider in order to minimise those dangers.

Answered: 1 week ago

Question

★★★★★
For 100 births, P(exactly 56 girls) = 0.0390 and P(56 or more girls) = 0.136. Is 56 girls in 100 births a significantly high number of girls? Which probability is relevant to answering that question?

Answered: 1 week ago

Question

★★★★★
The historical returns on a balanced portfolio have had an average return of 10% and a standard deviation of 15%. Assume that returns on this portfolio follow a normal distribution. Use the empirical...

Answered: 1 week ago

Question

★★★★★
Presented below is information related to Bramble Company. 1. On July 6, Bramble Company acquired the plant assets of Doonesbury Company, which had discontinued operations. The appraised value of the...

Answered: 1 week ago

Question

★★★★★
(a) State the hypotheses and identify the claim with the correct hypothesis. (b) Find the critical values, rounded to 2 decimal places. (C) Compute the test value, rounded to 3 decimal places. (D)...

Answered: 1 week ago

Question

★★★★★
Question 1: How the Vesting Schedule Affects Employee Assets An employee who separates from service prior to becoming 100% vested will forfeit the unvested portion of his or her account balance. The...

Answered: 1 week ago

Question

★★★★★
Question 1: How the Vesting Schedule Affects Employee Assets An employee who separates from service prior to becoming 100% vested will forfeit the unvested portion of his or her account balance. The...

Answered: 1 week ago

Question

★★★★★
Suppose you have an experiment where you flip a coin three times. You then count the number of heads. a) State the random variable. Select an answer b)\ e number of heads. rv X = the probability that...

Answered: 1 week ago

Question

★★★★★
8. Consider the experiment of flipping three fair coins at the same time. a. How many outcomes are possible? (Hint: you can use the slot method) b. List out all of the possible outcomes. (There...

Answered: 1 week ago

Previous Question Next Question