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Mars2501 [29]
3 years ago
5

The historical returns on a portfolio had an average return of 8 percent and a standard deviation of 12 percent. Assume that ret

urns on this portfolio follow a bell-shaped distribution.What percentage of returns were greater than 20 percent?
Business
1 answer:
Gnesinka [82]3 years ago
5 0

Answer:

percentage of returns is 16%

Explanation:

given data

average return μ = 8 percent

standard deviation σ = 12 percent

x = 20

solution

we get here

z = \frac{x-\mu  }{\sigma }     ......................1

put here value and we will get

z =  \frac{(20 - 8)}{12}  

z  = 1  

so here

P(x > 12) = P(z > 1)

= 0.1587 = 16%

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