A young investment manager tells his client that the probability of making a positive return with his suggested portfolio is 90 If it is known that returns are normally distributed with a mean of 5 6 , what is the risk, measured by standard deviation, that this investment manager assumes in his cal...

P X 0 090 is equivalent to P X 0 010We fir ...

A young investment manager tells his client that the probability of making a positive return with his

Question:

A young investment manager tells his client that the probability of making a positive return with his suggested is 90%. If it is known that returns are normally distributed with a mean of 5.6%, what is the risk, measured by standard deviation, that this investment manager assumes in his calculation?

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...