Question: The historical returns on a balanced portfolio have had an average return of 8% and a standard deviation of 12%. Assume that returns on this
The historical returns on a balanced portfolio have had an average return of 8% and a standard deviation of 12%. Assume that returns on this portfolio follow a normal distribution. Use the empirical rule for normal distributions to answer the following questions.
a. What percentage of returns were greater than 20%?
b. What percentage of returns were below 216%?
a. What percentage of returns were greater than 20%?
b. What percentage of returns were below 216%?
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