A Return Series Has an Arithmetic Mean of 10

question 40

Multiple Choice

A return series has an arithmetic mean of 10.5% and standard deviation of 13%. Assuming the returns are normally distributed what is the range of returns that an investor would expect to receive 95% of the time?

• A)10.5% to 13%
• B)-2.5% to 23.5%
• C)-28.5% to 49.5%
• D)-15.5% to 36.5%
• E)0% to 36.5%

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Definitions:

Compulsive Users

Individuals who feel an uncontrollable urge to use substances or engage in behaviors despite adverse consequences.

Opium

is a narcotic drug obtained from the opium poppy, used historically in medicine for pain relief but also as a substance of abuse.

Panacea

A universal remedy or solution to all diseases or problems.

Psychologically Addictive

The condition where a behavior or substance leads to a compulsive craving despite potential harmful consequences due to mental or emotional dependency.