SCENARIO 6-6 According to Investment Digest,the Arithmetic Mean of the Annual Return

question 113

Short Answer

SCENARIO 6-6
According to Investment Digest,the arithmetic mean of the annual return for common stocks over an 85-year period was 9.5% but the value of the variance was not mentioned.Also 25% of the annual returns were below 8% while 65% of the annual returns were between 8% and 11.5%.The article claimed that the distribution of annual return for common stocks was bell-shaped and approximately symmetric.Assume that this distribution is normal with the mean given above.Answer the following questions without the help of a calculator,statistical software or statistical table.
-Referring to Scenario 6-6,find the probability that the annual return of a random year will be more than 11.5%.

Recognize how color perception is affected by light conditions and the trichromatic theory.

Grasp the process of transduction in the visual system.

Identify conditions affecting the focus of vision, such as myopia and hyperopia.

Understand the opponent-process theory and its significance in explaining color vision and afterimages.

---

Definitions:

Written Contract

A formal agreement between two or more parties that is expressed in writing and is binding under law.

Binding Written Agreement

A contract documented in writing that is legally enforceable between two or more parties.

Entrepreneurship

The act of creating, designing, and running a new business, often initially a small business, offering products, processes, or services for sale or hire.

Emancipated Minor

A legal status granted to individuals under the age of 18, allowing them to enjoy adult rights and responsibilities due to certain circumstances.