Question
You are considering investing in JR stock. Your stockbroker has informed you that the expected return of JR is 16%. Further information reveals that the
You are considering investing in JR stock. Your stockbroker has informed you that the expected return of JR is 16%. Further information reveals that the standard deviation of JR is 8%. Based on the information provided, you believe
a) there is a 2.5% chance that the actual return of LBJ next year will be negative.
b) there is a 2.5% chance that the actual return of LBJ next year will be positive.
c) there is a 2.5% chance that the actual returns will exceed 32%.
d) there is a 32% chance that the actual return of LBJ next year will be outside 0% and 32%.
e) (a) and (d) are true.
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