# Question: According to Investment

According to Investment Digest ("Diversification and the Risk/Reward Relationship", Winter 1994, 1-3), the mean of the annual return for common stocks from 1926 to 1992 was 15.4%, and the standard deviation of the annual return was 24.5%. During the same 67-year time span, the mean of the annual return for long-term government bonds was 5.5%, and the standard deviation was 6.0%. The article claims that the distributions of annual returns for both common stocks and long-term government bonds are bell-shaped and approximately symmetric. Assume that these distributions are distributed as normal random variables with the means and standard deviations given previously.

a. Find the probability that the return for common stocks will be greater than 0%.

b. Find the probability that the return for common stocks will be less than 20%.

a. Find the probability that the return for common stocks will be greater than 0%.

b. Find the probability that the return for common stocks will be less than 20%.

**View Solution:**## Answer to relevant Questions

Compute a 95% confidence interval for the population mean, based on the sample 10, 12, 13, 14, 15, 16, and 49. Change the number from 49 to 16 and recalculate the confidence interval. Using the results, describe the effect ...A capacitor has an accumulated charge of 600 with 5 V across it. What is the value of capacitance?The voltage across a 100-F capacitor is shown in Figure P5.10. Compute the waveform for the current in the capacitor The waveform for the current in a 100-yF initially uncharged capacitor is shown. Determine the waveform for the capacitorâ€™s voltage. The current i (t) = 0 t0 Flows through a 150-mH inductor. Find both the voltage across the inductor and the energy stored in it after 5 seconds.Post your question