Question: the expected return is 1 0 % , the standard deviation is 3 % , about 6 8 % of the time returns will be

the expected return is 10%, the standard deviation is 3%, about 68% of the time returns will be expected to fall between 10% and 13%.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

can someone explain to me how this works please? 4. Assume a stock has a normal distribution, an expected return of 9% and a standard deviation of 4%, the stock's return should fall between and 66%...

Q:

#2 and #3 (b) What corporate governance mechanisms are commonly employed to combat the agency problem feared by these scholars? 2. An investor is considering investing in two securities Security A....

Q:

As a risk averse investor, which of the following four otherwise identical investments would you prefer? Security C, which is offering an expected return of 5% and a standard deviation of 3%....

Q:

1. 1. Suppose Intel has an expected return of 1% and a standard deviation of 40%. Twitter has an expected return of 18% and standard deviation of 60%. The correlation between Intel and Twitter is...

Q:

Consider a portfolio comprised of Security A and Security B, with an equal investment in each. Security As returns have an expected return of 3% and a standard deviation of 4%. Security Bs returns...

Q:

1. Security C has an expected return of 6% and a standard deviation of 3% while security D has an expected return of 10% and a standard deviation of 7%. The correlation of returns between the two...

Q:

Consider a portfolio comprised of Security A and Security B, with an equal investment in each. Security As returns have an expected return of 3% and a standard deviation of 4%. Security Bs returns...

Q:

Security C has an expected return of 6% and a standard deviation of 3% while security D has an expected return of 10% and a standard deviation of 7%. The correlation of returns between the two...

Q:

As a risk averse investor, which of the following four otherwise identical investments would you prefer? Security B , which is offering an expected return of 1 0 % and a standard deviation of 3 % ....

Q:

ard Support Question 22 10 ry ion 1. You are thinking of adding one of two investments to an already well- diversified portfolio. ials Security A Security B Expected Return = 14% Expected Return =...

Q:

Refer to Practice 22-1. Briefly explain why overall profitability declined in Year 2 and then went back up in Year 3.

Q:

1. Explain the motivation problem in this organization in terms of the content models of Maslow, Alderfer, and Herzberg. What are the other things that the human resources manager is referring to in...

Q:

PV&A Investments is considering a project that will produce cash inflows of $ 1 1 , 0 0 0 in year 1 , $ 2 4 , 0 0 0 in year 2 , and $ 3 6 , 0 0 0 in year 3 . What is the present value of these cash...

Q:

Pharoah Company reported the following amounts for 2022: Raw materials purchased $95,200 Beginning raw materials inventory 5,824 Ending raw materials inventory 5,040 Beginning finished goods...