TABLE 6-6 According to Investment Digest, the Arithmetic Mean of the Annual

question 183

Short Answer

TABLE 6-6
According to Investment Digest, the arithmetic mean of the annual return for common stocks from 1926-2010 was 9.5% but the value of the variance was not mentioned. Also 25% of the annual returns were below 8% while 65% of the annual returns were between 8% and 11.5%. The article claimed that the distribution of annual return for common stocks was bell-shaped and approximately symmetric. Assume that this distribution is normal with the mean given above. Answer the following questions without the help of a calculator, statistical software or statistical table.
-Referring to Table 6-6, 10% of the annual returns will be less than what amount?

Grasp the significance of participative management and the value of soliciting input from all staff levels.

Appreciate the role of managerial visibility and accessibility in employee relationship building.

Identify the effectiveness of maintaining an open-door policy and communicating management styles to employees.

Understand the core principles of human resource management as applicable to all managers.

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Definitions:

Festinger

Leon Festinger was a social psychologist known for the theory of cognitive dissonance, which describes the discomfort felt when holding conflicting beliefs or values.

Communicator

A person or device that conveys information or facilitates communication between parties.

Similarity

The state of being alike or sharing common features.

Credibility

The quality of being trusted and believed in, often assessed in sources of information or individuals presenting arguments.