Q3

Question 3 (Mandatory) (7 points)

Question 3 (Mandatory) (7 points) v' Saved 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 16.5%, and the standard deviation of the annual return was 19%. a. What is the probability that the stock returns are greater than 0%? b. What is the probability that the stock returns are less than 18%? What is the area between the mean and our actual score? C) 0.308 in part a, 0.039 in part b C) 0.408 in part a, 0.039 in part b C) 0.308 in part a, 0.032 in part b @ 0.408 in part a, 0.319 in part b Hide hint for Question 3 Hint: Find the value in the corresponding table, here: Distribution Tables