Question: c ) Annual returns on the more than 5 0 0 0 common stocks available to investors vary a lot. In a recent year, the
c Annual returns on the more than common stocks available to investors vary a lot. In a recent year, the mean return was and the standard deviation of return was The law of large numbers says that
A if you invest in a large number of stocks chosen at random, your average return will have approximately a Normal distribution.
B as you invest in more and more stocks chosen at random that year, your average return on these stocks gets ever closer to
C you can get an average return higher than the mean by investing in a large number of stocks.
D None of the above.
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
