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:

Diorite

A medium- to coarse-grained, intermediate-composition igneous rock; the phaneritic equivalent of andesite.

Dissolved Gas

A gas that has been absorbed into a liquid solution, such as carbon dioxide in water, often influencing chemical reactions and physical properties.

Andesite

A volcanic rock type that is intermediate in composition between basalt and rhyolite, often found in volcanic arcs associated with convergent tectonic boundaries.

Alpha Decay

The radioactive decay process in which an unstable atom fissions, releasing a positively charged particle with two protons and two neutrons.