A Return Series Has an Arithmetic Mean of 10

question 71

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 90% 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 10.5%

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Definitions:

Kohlberg's Theory

A theory of moral development proposed by Lawrence Kohlberg, suggesting that people progress through a series of stages of moral reasoning.

Flawed

Having imperfections, defects, or shortcomings.

Piaget's Theory

A framework for understanding child development that focuses on how children acquire knowledge and how their ability to think and reason evolves over time.

Social-cognitive Theory

A theory of learning and social behavior which emphasizes the role of observational learning, social experience, and reciprocal determinism in the development of personality.