A Return Series Has an Arithmetic Mean of 12

question 26

Multiple Choice

A return series has an arithmetic mean of 12.8% and standard deviation of 7.8%. Assuming the returns are normally distributed what is the range of returns that an investor would expect to receive 90% of the time?

• A)12.8% to 20.6%
• B)-10.6% to 36.2%
• C)-2.8% to 28.4%
• D)-12.8% to 20.6%
• E)10.6% to 36.2%

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Blocking

A technique used in experimental design to minimize the effects of variable confounding by grouping similar experimental units together and randomly assigning treatments within these blocks.

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A positive or negative environmental stimulus that motivates behavior.

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