Question: The historical returns on a portfolio had an average return of 19% and a standard deviation of 12%. Assume returns on the portfolio follow

The historical returns on a portfolio had an average return of 19%

The historical returns on a portfolio had an average return of 19% and a standard deviation of 12%. Assume returns on the portfolio follow a bell-shaped distribution. Use the empirical rule to answer the following questions. a. What percentage of returns were between 7 percent and 31 percent? Percentage of returns % b. What percentage of returns were greater than 31 percent? Percentage of returns % c. What percentage of returns were below -5 percent? Percentage of returns %

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!