The historical returns on a portfolio had an average return of 8% and a standard deviation of
Question:
The historical returns on a portfolio had an average return of 8% and a standard deviation of 6%. Assume returns on the portfolio follow a bell-shaped distribution. Use the empirical rule to answer the following questions.
a. Approximately what percentage of returns were between 2% and 14%?
b. Approximately what percentage of returns were greater than 14%?
c. Approximately what percentage of returns were below −4%?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Business Analytics Communicating With Numbers
ISBN: 9781260785005
1st Edition
Authors: Sanjiv Jaggia, Alison Kelly, Kevin Lertwachara, Leida Chen
Question Posted: