If the Mean of an Investment's Historical Returns Is 12

question 14

Multiple Choice

If the mean of an investment's historical returns is 12.5% and the standard deviation of the returns is 4.3%,then there is a 68% chance the returns will sit between ________________.

• A)3.9 and 21.1%
• B)- 8.2% and 16.8%
• C)8.2% and 16.8%
• D)- 0.4% and 25.4%

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Definitions:

Conditioned Response (CR)

The learned response to the conditioned stimulus that occurs after a conditioned stimulus–unconditioned stimulus pairing.

Conditioned Stimulus (CS)

A previously neutral stimulus that, after being associated with an unconditioned stimulus, elicits a conditioned response.

Unconditioned Response (UR)

An unlearned reaction that is automatically elicited by the unconditioned stimulus.

Unconditioned Stimulus (US)

An unconditioned stimulus is any stimulus that naturally triggers a reflexive response without the need for prior learning.