Question: The historical returns on a portfolio had an average return of 16% and a standard deviation of 10%. Assume returns on the portfolio follow a
The historical returns on a portfolio had an average return of 16% and a standard deviation of 10%. Assume returns on the portfolio follow a bell-shaped distribution. Use the empirical rule to answer the following questions.
What percentage of returns were between 6 percent and 26 percent?
What percentage of returns were greater than 26 percent?
What percentage of returns were below 4 percent?
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