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Alexxandr [17]
3 years ago
11

An investment strategy has an expected return of 21 percent and a standard deviation of 15 percent. Assume investment returns ar

e bell shaped. a. How likely is it to earn a return between 6 percent and 36 percent?
Business
1 answer:
Oxana [17]3 years ago
5 0

Answer:

68%

Explanation:

Given :

Mean, μ = 21

Standard deviation, σ = 15

Recall :

Zscore = (x - μ) / σ

P(Z =(x - μ) / σ) - P(Z =(x - μ) / σ)

x = 6 and x = 36

P(Z =(36 - 21) / 15) - P(Z =(6 - 21) / 15)

P(Z = 1) - P(Z = - 1)

Using the Z probability calculator :

P(Z = - 1) = 0.15866

P(Z = 1) = 0.84134

0.84134 - 0.15866

= 0.68268

= 0.68

= 68%

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<h3>What are fixed costs?</h3>
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