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The historical returns on a portfolio had an average return of 8% and a standard deviation of 6%. Assume returns on the portfolio follow a
The historical returns on a portfolio had an average return of 8% and a standard deviation of 6%. Assume returns on the portfolio follow a bell-shaped distribution. Use the empirical rule to answer the following questions. a. What percentage of returns were between 2 percent and 14 percent?
b. What percentage of returns were greater than 14 percent?
c. What percentage of returns were below 4 percent?
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