A financial advisor informs a client that the expected return on a portfolio is 8 percent with

Question:

A financial advisor informs a client that the expected return on a portfolio is 8 percent with a standard deviation of 12 percent. There is a 25% chance that the return would be negative and a 15% chance that the return would be above 16 percent. If the advisor is right about her assessment, is it reasonable to assume that the underlying return distribution is normal?

Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most... Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these... Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...