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Investment strategy has an expected return of 24 percent and a standard deviation of 13 percent.
Assume investment returns are bell shaped.
A) how likely is it to earn a return between 11 % and 37 %?
B) how likely is it to earn a return greater than 37 %?
C) how likely is it to earn a return below -2 %?
PLEASE SHOW ALL WORK!
Solution
A. 0.6828
B. 0.1586
C. 0.02259

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  • 1. Investment strategy has an expected return of 24 percent and a standard deviation of 13 percent. Assume investment returns are bell shaped. A) how likely is it to earn a return between 11 % and 37 %? B) how likely is it to earn a return greater than 37 %? C) how likely is it to earn a return below -2 %? PLEASE SHOW ALL WORK! Solution A. 0.6828 B. 0.1586 C. 0.02259